Bolt is testing new model that will reduce commissions for high-performing drivers in Lagos
GAS
Ride-hailing company Bolt is testing a dynamic commission model in Lagos that will reduce commissions for high-performing drivers on its platform. Country Manager for Bolt Nigeria, Osi Oguah, disclosed this in a chat following a Technext query into the matter.
Responding to a query, the Country Manager said the new model is aimed at achieving a two-pronged effect:
- Increase drivers’ earnings and improve their overall experience
- Improve ride availability for passengers
“At Bolt, we are constantly testing new ways to improve the overall driver experience on our platform. The recent trial of a dynamic commission model in select markets is part of that ongoing effort. This model is designed to help drivers increase their earning opportunities by reducing missed trip requests, particularly in high-demand areas, while also improving ride availability for passengers,” Osi Oguah said.
The model, currently in its pilot phase, is designed to optimise driver earnings by encouraging higher trip acceptance and improving overall order volume. The Country Manager said the model adjusts commission rates in a way that helps drivers receive more trip requests and, ultimately, earn more on the platform.
See also: e-Hailing drivers in Edo state to commence 3-day warning strike from today
Several Lagos drivers have told this reporter that they have seen a reduction in commissions to as low as 7.5%. Bolt explained that commissions paid by drivers will vary within a structured range under the new model,
“While some drivers have reported commission rates as low, it is important to note that commissions vary within a structured range based on real-time demand and driver activity, to maximise earnings potential, not penalising performance,” the Country Manager said.
Is Bolt’s dynamic commission model a win for drivers?
This development comes after years of protests by drivers for a reduction in commissions. Months back, e-Hailing drivers in Lagos vowed to dump popular ride-hailing apps, inDrive, Uber and Bolt in favour of an indigenous option for this reason.
According to the Lagos PRO of the Amalgamated Union of App-based Transporters of Nigeria (AUATON), Comrade Steven Iwindoye, the drivers will exit en masse, except if the companies acquiesce to several of their demands, one of which is a commission slash to 5%.
The call for reduced commissions became louder following a steep increase in the price of premium motor spirit (PMS) in 2023. Following the launch of the Presidential Committee on the National Gas Initiative (PCNGi) and its mandate to cushion the effects of the fuel price increase, the e-hailing companies reportedly committed to reducing fares without consulting drivers or any resolve to slash commissions, further enraging the drivers.
It will be interesting to see how Bolt’s dynamic commission will be accepted by the drivers, since it is not a sweeping reduction but is spread across the board and is structured.
However, Bolt Nigeria says it anticipates some concerns and is monitoring feedback during this pilot stage.
“We understand that change can raise concerns, and we are actively monitoring feedback from driver-partners. This is a pilot program, and we remain committed to engaging with drivers and adjusting where needed to ensure the model works in a way that is fair, sustainable, and supports long-term driver welfare. At Bolt, our goal remains to provide drivers with flexible, consistent earning opportunities in a challenging economic climate,” the Country Manager said.
Recall that this is not the first time Bolt has introduced a commission slash.
The company introduced something similar exactly one year ago. Then it offered drivers a 15 per cent commission kickback bonus. According to a message sent to drivers and seen by Technext, drivers must have completed five trips in a day to qualify.
Thus, the commission kickback bonus only commenced from the sixth trip. Drivers also got back 15% of the commission paid for that trip and the ones after it. Also, the drivers were required to achieve a 40% acceptance rate and a 55% completion rate for those five trips to be eligible for the bonus.
See also: Drivers vow to dump Uber, Bolt, inDrive for indigenous apps if 5% commission not met
