Uber Nigeria has raised its charges in response to the challenges caused by inflation and the recent increase in gasoline prices. This is an attempt to assist drivers in covering increased operational costs while still providing an inexpensive service to riders.
This fare hike is part of Uber’s commitment to providing improved earning possibilities for drivers.
The corporation also wants to guarantee that riders continue to have access to affordable transportation, thus the fare rise is being administered in such a way that the impact on riders is minimized.
The fare increase is temporary, and it will only be in effect between June 3rd and June 6th. After that, Uber will assess the situation and make a decision about whether to extend the fare increase or not.
In a statement attributed to Tope Akinwumi, Country Manager for Uber in Nigeria, he said:
“Drivers are at the heart of everything we do, and we continue to work on initiatives and engage with drivers to help make Uber the app of choice for drivers while maintaining an affordable service for riders.
“Following an in-depth review of the current fuel subsidy removal, Uber updated fares on the 3rd and 9th of June on the app to reflect existing economic conditions.
“We believe these changes have helped better support drivers in increasing their earning opportunities. Furthermore, we lowered the service fee in February 2022 from 25% to 20% to help enable better-earning opportunities for drivers.
“We want the best for drivers who operate on the Uber platform and frequently engage with them directly through roundtables, surveys, phone, and in-app channels to better understand and receive feedback on the realities they face in their businesses.”
Why did Uber increase fares?
According to Uber, the June 2023 fare increases are designed to help drivers cover the recent increase in fuel costs, not the entire cost of fuel.
The company also said that it is constantly monitoring local dynamics to see what changes can be implemented and when.
Uber also said that its service fee ensures the running of the Uber App and helps it maintain and make continuous investments to enhance its technology designed to meet the needs of riders and drivers.
The company claimed that drivers on its platform earn more than other ride-hailing platforms in Nigeria.
Uber is one of the leading ride-hailing platforms in Nigeria, offering services such as UberX, Uber Comfort, Uber Greenlight Hubs, and Uber Cash. The company has faced competition from other players such as Bolt, InDrive and Gokada.
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