Lagos State government to regulate ride-hailing services like Bolt, Uber and others.

The Lagos state government, in recent news, has decided to regulate ride-hailing services in such a way that they might have to start paying the sum of N10 million licenses fee, and 10% per Trip. 

Although the regulations is said to not have been implemented, but when it does, the ride-hailing companies with third party operators like Uber and Bolt will be mandated to pay a license fee of N10 million or N25 Million if the company has over 1000 drivers.

This 10% tax on each trip could be the government’s method of taking a share of the booming ride-hailing business in the state. It is expected that this, somehow, will come at the expense of the drivers as ride-hailing companies like Uber already have between 20-30% the cost per trip.

However, for subsequent years the ride-hailing companies will pay an annual renewal fee of N5 million or N10 million if they have over 1000 drivers.

For transport companies that own their own branded cars with employed drivers, the regulation mandates them to pay N5million. However, if their drivers exceed 50, they would be required to pay N10 million.

Drivers on Uber and Bolt platforms have started receiving messages concerning the new regulations. According to the news report, a driver on the Uber platform, Sunday Faleye said the company sent a message for him to update his profile with copies of his hackney permits and LASDRI licenses.

Uber has also reportedly listed “valid Hackney permit” as one of the criteria for enrolling new vehicles on its platform.

However, the president of the National Union of Professional E-Hailing Driver-Partners (NUPeDP), Ayoade Ibrahim expressed confidence that the government’s 10% won’t be the drivers’ burden to bear. The chairman expressed regret that car-hailing companies have failed to recognize the union and as such, can’t work hand in hand with them.

While reports claim the government discussed the licensing fee with about 20 operators, the spokesperson of the Ministry of Transport, Bolanle Ogunlana said the state has not yet instructed any operator to pay license fees.

She, however, confirmed that the government and operators were negotiating on the operational guidelines for ride-hailing and Transportation in the state.

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