Drivers Decry Soaring Data Costs in E-Hailing Industry

Drivers affiliated with the Amalgamated Union of App-Based Transporters of Nigeria have voiced their concerns about the rapidly increasing prices of mobile data.

Drivers working for platforms such as Uber, Bolt, and InDrive have voiced their worries about increasing costs, stating that these were significantly affecting their income on a day-to-day basis.

In an interview with Saturday PUNCH The Treasurer for the South-South Zone of AUATON, Reward Ahuruezenma, highlighted the challenging financial situation faced by e-hailing drivers.

Previously, I would typically spend around ₦1,000 to ₦1,500 on data each day, but currently, it’s closer to ₦2,500. This situation is becoming unsustainable. The high costs are affecting calls, GPS functions, and the overall use of ride-hailing applications," he stated.

Ahuruezenma criticized the federal legislators for failing to act, describing the present data costs as a type of exploitation.

What is occurring here is blatant theft," he deplored, further stating, "A data plan meant to last an entire month is being exhausted within just a few hours, leaving us without service.

He expressed regret over the fact that numerous drivers could no longer earn sufficient profits to support their families, since expenses related to fuel and upkeep kept increasing.

Ahuruezenma stated that the drivers could raise their rates if the circumstances persisted.

He said, “When we earn, the money goes straight to data, fuel, and maintenance. It is no longer profitable. If nothing changes, we will have no choice but to increase the fare.”

Also, an ex-officio of the Lagos State Chapter of the union, Wasiu Ismail, described the situation as “disastrous” for the business.

He warned that fare increases might be inevitable, saying the drivers were facing a dire situation.

“Before the increase, I spent N7,000 a week on data. Now, it’s between N12,000 and N18,000. Google Maps alone can wipe out your data within hours. Currently, the minimum fare varies, but with these data challenges, I foresee it rising to N5,000. We need to survive,” he said.

Stating that the cost of data was not the only burden on drivers, Ismail said many e-hailing drivers had been forced to cut back on services such as air conditioning to reduce costs.

He added that some drivers had to extend car servicing intervals, leading to vehicles breaking down due to costs.

A former spokesman and ex-officio for AUATON, Jossy Adaraniwon, highlighted the dual impact of both the soaring price of fuel and the increase in data and airtime costs.

He stated, "Our members currently spend upwards of ₦2,800 each day on data and airtime. Additionally, the ride-hailing platforms take up to a 32% commission, which significantly reduces the profits for drivers."

Adaraniwon mentioned that drivers allocate roughly N19,600 per week for data and airtime expenses, along with a daily expenditure of about N30,000 on fuel.

"After the ride-hailing platforms deduct their commission, the driver is only left with N4,700. When you add car rental fees, meal costs, and other expenditures, it’s getting increasingly difficult for drivers to cover their expenses," he explained.

AUATON demanded immediate governmental action and promoted the adoption of Compressed Natural Gas as a substitute for petrol.

Despite the government’s endorsement for the unrestricted dissemination of CNG kits, Adaraniwon noted that numerous AUATON members had yet to see the benefits.

He implored President Bola Tinubu to make sure that AUATON members are part of upcoming allocations.

In January, the Federal Government implemented a 50% increase in tariffs for telecommunications services, which led to significant public opposition.

The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, supported the action, emphasizing the requirement for private telecommunications firms to generate profits from their investments.

Provided by Syndigate Media Inc. ( Syndigate.info ).