Pascal Oparada
Ride-hailing companies in Lagos are kicking against the new policy by the Lagos State Government.
The new ride-hailing policy takes effect in Lagos this month, the state government has said. The policy mandates ride-sharing companies to pay 10% service tax on each transaction. It also requires fleet-size related licenses and renewal fees to operate.
The new policy did not go down with Uber, Nairametrics reports. The ride-sharing giant agrees with regulations that support innovation, rather than discourage it. In addition, the vehicles in use must not be more than three years old from the manufacturer.
Back in 2016, the Lagos state government first attempted to regulate ride-hailing startups by requiring taxi companies to register each operator with the state at the cost of $320 per car.
In February, Opay was also frustrated out of business due to policy changes in bike-riding in the state.
For many years, the changes in state transport policies have severely affected businesses and families. Fashola`s administration also banned ‘okada’.
The increased cost of operation will be passed to riders as the companies may increase the fares to save their businesses. Both Uber and its competitors use vehicles as old as 2004, so the new guideline will put drivers out of work, and reduce car owners out of business.
It is unclear the drivers of the policy today. The policy is likely to completely wipe out the local cab industry where older vehicles are in use. Thus, it means adding fuel to the burning employment and suffering.
Aside from the companies taking a swipe at the policy, Nigerians have said the new policy is vindictive and selective as the government has left the chaotic transport industry in the state largely at the hands of thugs who continue to have a field day while milking residents dry.
According to them, the yellow bus operators popularly called Danfo drivers are sacred cows who can not be touched because they are controlled by urchins who are used by the government.
Under the new regulations, which were earlier scheduled to take effect in March, third-party operators like Uber and Bolt that have over 1000 drivers on their platforms will pay ₦25 million licencing fee and ₦10 million annual renewal fee.
Those that have less than 1000 drivers will pay a licensing fee of ₦10 million and an annual renewal fee of ₦5 million if they have less than 1000 drivers.
Operators who directly own their cars and employ their drivers will pay only the license fee of ₦5 million if such operators have below 50 drivers. Those who have over 50 drivers will pay ₦10 million for the operating license.
E-hailing operators are also to pay 10 per cent “service tax” on “each transaction paid by the passengers” and are mandated to renew their licenses three months before the expiration of the current licence.
The president of the National Union of Professional App-Based Workers Ayoade Ibrahim told The Guardian on Monday that the new regulations put a heavy burden on the drivers and expose them to the whims of ride-hailing companies.