Moove drivers protest 100% increase in weekly remittance, shut down operations

e-Hailing drivers operating under the vehicle financing company, Moove and the Uber platform, have shut down operations in protest of a 100 per cent increase in weekly remittance by the company for financing their Suzuki S-presso vehicles.

According to the drivers, the arbitrary increase in the weekly remittance by Moove and the insensitivity of its payment breakdown are the reasons for their protest. Thus, they are requesting that the company reverse the high increment.

Some drivers on the platform who spoke with Technext confirmed the protest, which is expected to begin in Maryland, Lagos. According to the drivers, Moove increased the weekly remittance from 56,400 naira to 112,200 naira, a 100 per cent increase, which is simply unacceptable to the drivers.

“We are protesting the unjust increment of remittance. The weekly remittance was increased by 100 per cent, and the tenor for owning the car remains the same. And some drivers didn’t get their cars brand new,” a Moove driver said.

Recall that Moove drivers obtained their vehicles through a vehicle financing loan scheme. This scheme requires them to make loan repayments every week. The drivers are also expressing alarm that of the 120,200 naira new weekly remittance, only 39,766 naira covers the loan repayment, a mere 33 per cent.

According to a breakdown seen by Technext, aside from the 39,766 naira for loan cost, there is also a weekly maintenance cost of 9,966 naira, despite a weekly repairs fund of 16,343 naira, a weekly insurance cost of 2,885 naira, a paltry health insurance cost of 505 naira, and a handling cost of 42,735 naira which left drivers wondering why the handling cost is more than the loan cost.

They are also demanding that Uber, the platform on which tMoove drivers operate, pegs its commission to a fee not exceeding 20 per cent.

The drivers also noted that the protest will be a peaceful one, and drivers found to be exhibiting violent behaviours will be apprehended and handed over to the authorities.

Finally, they insist that the drivers will not be working on their usual UberGo platform until the company reverses itself.

Moove might be adjusting to harsh realities

Exactly a year ago, Technext reported that drivers operating under the Uber Go platform had been thrown into panic after reports that Moove was planning to increase their weekly remittances.

The cars were issued on hire purchase with a four-year repayment limit, and a repayment plan of 56,400 naira weekly, excluding the 25 per cent commission deducted from fares.

According to reports, the company invited the drivers in groups and broke the news to them. Several drivers confirmed this to Technext.

One driver who claimed to have been invited to one such meeting said the company’s representatives explained that the company’s operating costs had increased. This explains the need to increase the weekly rate.

“I was among those drivers who were invited to the meeting. The information is true. When the management explained how much they were spending on services and other expenses, in fact, it was worth increasing the remittance. The amount has not been communicated yet,” the driver said.

See also: Uber drivers panic as Moove reportedly plans to increase N56,400 weekly remittance for Suzuki S-presso cars

However, a source familiar with the matter said Moove might be re-evaluating its business in the face of the prevailing economic situation.

The conditions under which many of the drivers received their vehicles have changed drastically, with the company considering the possibility of suffering considerable losses at the end of the tenors.

The source further explained that the interest rates agreed with the drivers within the repayment limit have been eroded by inflation and, as such, have become unsustainable, thus the increase.

“The limit set is calculated based on interest rates. The initial interest rate. It is being eroded by inflation and has become unsustainable. Moove is clearly worried about losing money. Therefore, the only realistic way out of this challenge is to end the tenures of the drivers as swiftly as possible,” the source told Technext.