‘Your pricing system is inhumane’ – AUATON counters inDrive’s freedom claims

Following claims made by taxi-hailing company, inDrive, that its bidding system for fares provides freedom for drivers, the Amalgamated Union of App-based Transporters of Nigeria (AUATON) has expressed disagreement with the company, arguing instead that its bidding system is inhumane.

This was contained in a statement sent to Technext and signed by the Public Relations Officer (PRO) of the union’s Lagos state chapter, Comrade Steven Iwindoye.

Recall that in an Independence Day address titled Mobility, fairness and the true meaning of freedom on Independence Day, inDrive’s Country Representative, Timothy Oladimeji, claimed that for the company, Independence Day is not only about politics or history but the celebration of freedoms for drivers to earn what they want and for riders to pay what they want.

He further noted that, unlike most ride-hailing platforms, inDrive allows passengers and drivers to agree on the fare before a trip begins.

“Riders can offer their fare, and drivers have the freedom to accept, decline, or make a counteroffer. This approach creates a transparent process where both sides have a say, encouraging open negotiation rather than one-sided pricing. By enabling mutual agreement, the model provides flexibility, ensures clarity before the ride starts, and reflects a more balanced relationship between passengers and drivers,” Oladimeji said.

In response, the AUATON argued that independence is not only about political freedom. It is also about economic justice, fair reward for labour, and dignity for all workers. Unfortunately, inDrive’s bidding system provides drivers with no fair reward, no dignity and certainly no economic justice.

“Indrive’s price-bidding mechanism allows passengers to force fares down to inhumane levels. Trips worth ₦5,000 are often forced to ₦1,500 or ₦2,000, leaving drivers with fuel loss and no profit. This model is killing the business and must be replaced with a standardised minimum fare system that guarantees drivers a living wage,” the union’s statement reads.

AUATON laments abject driver conditions

The e-hailing drivers’ union further lamented the harsh realities facing transporters, noting that true independence is yet to be achieved in the sector. One of them is the issue of commissions. It described it as exploitative, with the cuts sometimes being as high as 35% per trip.

“Uber, Bolt, Indrive, and others deduct between 25% and 35% commission on every trip. Drivers shoulder all operating costs, including fuel, tyres, spare parts, insurance, taxes, and repairs, while platforms cash out billions into foreign accounts,” the union asserted.

The union also argued that since the subsidy removal, drivers now spend between ₦25,000 and ₦40,000 daily on fuel. This is coupled with the fact that the cost of maintenance and parts replacement has doubled while fares have stagnated.

In addition, app companies unilaterally give discounts and promotions to passengers. This further shrinks drivers’ incomes while companies’ commissions remain untouched.

The other problem is safety. The union argued that weak rider verification has exposed drivers to robbery, assault, and kidnapping. Despite these, there are no structured health or accident insurance plans provided by the companies for drivers.

Another issue is unfair deactivation of drivers as they are often suspended or blocked without due process, with no opportunity to appeal or defend themselves. All these have led to an impoverishment of drivers who generate wealth while the companies repatriate the wealth back to their home countries.

The union has demanded several key changes from the app companies.

“Our demands include a reduction in commissions to 10% to 15%. Anything higher is exploitation. Scrap discounts and promos that come from drivers’ pockets. Provide health insurance, accident cover, and security protections for drivers. Stop unfair deactivation and establish a labour dispute resolution board for drivers. Ensure that profits earned in Nigeria are taxed and reinvested locally for driver welfare,” the union said.

The AUATON also asked that inDrive end its “exploitative” price-bidding system and introduce minimum standard fares that reflect the cost of fuel and maintenance.

It also requested that Moove and Uber reverse their latest daily remittance increase from over ₦18,000 to a more realistic sum. They were also warned to stop intimidating and harassing drivers through security agencies, and review repayment models in line with inflation and rising fuel costs.