Uber/Moove 100% remittance hike: AUATON demands immediate reversal

The Amalgamated Union of App-Based Transporters of Nigeria (AUATON) has demanded the immediate reversal of a 100 per cent increase in weekly remittance of e-hailing drivers operating on Uber/Moove’s vehicle financing scheme. The union also threatened to shut down the Uber app if its demands are not met.

Recall that last week, drivers operating under the Moove vehicle financing scheme downed tools to protest the increase in their remittances.

According to the drivers, the vehicle financing company, which operates a drive-to-own system, increased the daily remittance from ₦9,400 to ₦18,700. a 100 per cent increase, which was simply unacceptable.

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

Reacting to the development, the union, in a press statement signed by the Lagos State PRO of the union, Comrade Steven Iwindoye, said the increase has placed a significant financial burden on the drivers. It noted that it was done without proper consultation or planning and therefore must be reversed.

“We demand the immediate reversal of daily remittance to ₦9,400 and an end to arbitrary increases. The increment was imposed without consultation. This was done without a corresponding adjustment in passenger fares or a reduction in the commissions deducted from drivers. Such action has placed unbearable financial strain on drivers who are already operating under tight margins,” the AUATON said.

From the beginning: Moove’s remittance hike

Sources close to the company claimed that Moove might be reacting to harsh economic realities, as the company’s operating costs have increased, forcing it to reevaluate its strategy.

However, the rate of the increase and a critical look at the items covered in the remittance would raise eyebrows.

According to a breakdown seen by Technext, of the new 112,200 naira, only 39,766 naira (33%) covers the cost of the loan. The remainder includes a weekly maintenance cost of 9,966 as well as a weekly repairs cost of 16,343 naira.

Others are 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.

Reacting, the AUATON accused Uber and Moove of manipulating repayment records, stating several reports by drivers to back this up.

“Drivers under the DTO scheme have reported cases where repayment records are deliberately manipulated, leading to extended repayment tenures. This practice undermines transparency and keeps drivers in a cycle of perpetual indebtedness,” the AUATON said.

The union called out Uber for the high and unfair commissions despite the precarious economic situation.

The statement noted that while regular Uber drivers are charged a commission of 25%, the Moove drivers are subjected to 33.33% commission. The union described it as a “discriminatory practice” that further reduces the already limited income available to the drivers while also constituting economic exploitation.

It also accused both companies of excessively overworking the drivers, thus jeopardising their safety. It noted that the company requires drivers to work a minimum of 72 hours weekly and to complete 82 trips per week. This is not only unsustainable but unsafe. Fatigued drivers are more likely to experience accidents, putting both themselves and the commuting public at risk.

Despite the huge risks, drivers are not enrolled for health insurance despite the payment made to that effect. The union said this constitutes a breach of trust and a failure in corporate responsibility.

Thus, aside from the immediate reversal of daily remittance, the union is also demanding that Uber and Moove must immediately audit and correct all manipulated repayment records to restore trust and fairness. It also demanded a reduction in the mandatory weekly hours and trip targets imposed on drivers to align with global occupational safety standards.

The union further demanded that drivers must not be unfairly penalised with higher commission rates, and the 25% commission rate applicable to regular Uber drivers must also apply to drive-to-own drivers.

Finally, all drivers who have been charged for HMO services must be properly enrolled, with clear records of coverage provided.

“AUATON demands that Uber/Moove engage in a formal dialogue with our union representatives within 72 hours of this press briefing. Should Uber/Moove fail to respond, AUATON will have no choice but to declare an indefinite industrial action after five working days, beginning from the date of this statement,” the union finished.