Introduction of Uber brought succour to FCT residents in the face of rising crime, especially operations of ‘one chance’ robbers in the territory, however, for other commercial drivers it has been a mixed bags of blessings, BENJAMIN UMUTEME writes.
When he joined Uber as one of its drivers in 2017, Baz as he is fondly called, said he had to work non-stop for close to 12 hours daily. According to him, before he got to drop a client another request was already waiting.
“I start work 6pm most times and work till the following day at about 6am before going home to rest for some hours. I used to make about N15,000 within that period.”
But fast forward to 2019, November precisely, Baz said things have changed, gone were the days when people used to turn down some requests.
Speaking in pidgin English, he told Blueprint Weekend that due to the influx of many drivers in the business, getting requests has become difficult.
“Na when Uber just start when drivers never plenty, request too much, before you drop person you don get another one. But now, when you carry person reach where he dey go you go find somewhere park dey pray for request.”
The situation is not peculiar to Baz alone. According to several other Uber drivers who spoke to our correspondent that it is only the clients and Uber that are enjoying the business.
Uber concept
Uber is a technologically-driven taxi company which helps clients hail comfortable taxis from anywhere, using a smartphone application. The customer downloads the Uber app and when a taxi is required, just pushes a button to request one.
Using a special algorithm, the app then matches the customer to the nearest pre-verified taxi and provides a fare estimate.
The app also automatically charges the customers registered card and the driver also gets paid directly into his bank account weekly. So, no cash ever needs to be exchanged. After the ride, the customer receives a fare breakdown by e-mail.
Uber moved into Africa in August 2013 and was launched in Nigeria in July 2014.
Requirements
According to Blueprint Weekend checks, vehicle eligible for enrolment must be not be older than 15 years old and must seat four or more passengers excluding the driver.
Also, such vehicle must be a four-door car, truck, or mini-van and must have working windows and air conditioning. This is as taxi cabs, government cars, or other marked vehicles are not allowed.
Similarly, Uber rejects salvaged or rebuilt vehicles. Our correspondent, however, discovered that majority of clients choose UberX which offers most recent models of cars in Abuja or Lagos.
It is also mandatory for all partners to pass a vehicle inspection at an approved inspection centre before taking their first trip. This costs N2000 and takes less than 30 minutes. To ensure drivers and client’s safety every car must have a passed inspection report.
Earning opportunity
Uber is a great earning opportunity for drivers that are self-employed because they have complete control over what hours to work. One can also adjust availability to suit their disposition, as clients are assigned only ones available hours. There is also no need to haggle prices with customers as fare prices are determined by the app, and are automatically calculated based on the distance and time.
Uber takes a 20 per cent commission and credits partners’ bank account at the end of each week or month with your earnings. One driver confirmed guaranteed bookings of a minimum of seven jobs each day, but an actual outcome of about 14 jobs by the end of the day.
Assuming an average fare of N1,500 per ride, this translates to N100,800 per week (after commissions) for a driver working six days a week. While this is a “guesstimate”, the driver our correspondent spoke to reported earnings of about N110,000 weekly after commissions.
He reported a monthly net income of between N240,000 and N260,000 after paying approximately N112,000 monthly for petrol and N60,000 monthly for insurance and maintenance expenses.
Obviously, non-owner drivers should expect a lower net income after car rental/leasing costs.
The fare
In most cities, cost is calculated up front, before rides are confirmed. The base rate is determined by the time and distance of a trip.
In Abuja for instance, a flat fee might be added to each trip and helps support operational, regulatory, and safety costs.
When there are more clients than available drivers, prices temporarily increase until supply and demand are balanced.
According to Baz, the assumption that Uber drivers make so much money is not true.
He insisted that gone were the days when a driver could make up to N15,000 per day hence it is difficult to rely on Uber alone as a source of income.
“Before now, drivers used to balance N30,000 but it’s now N25,000. Every week you dey give owner N25,000, how much you dey make in a week? Clients no dey!
“For example, you carry person for airport for N3,600, Uber take their 25 per cent inside that money, you come comot money for fuel, so how much come remain? And if you come see person carry come back, then you just make the trip for fuel money,” he told our correspondent.
For another Uber operator, John Musa, the low return from the business is a direct result of many people coming into the business which has lowered the driver-client ratio.
He added that with Taxify (now Bolt) coming into the market worsened the already dicey situation as its rates are cheaper than that of Uber.
According to him, these days you see a group of Uber drivers will pack under a tree, “them will sleep very well and after they wake up, they will begin to gist just to while away time. While they are in that place for maybe three or four hours, none would have got a request.
“Presently in Abuja, almost every car owner is either an Uber or Bolt driver just to make ends meet,” he further noted.
It’s welcome development
Many residents who spoke to our correspondent agreed that the advance of Uber has addressed some of the wide spread safety concerns in the territory.
For Jane, a student of Nasarawa State University, Keffi, the coming of Uber helped clip the wings of taxi drivers. According to her, “When the taxi drivers started losing patronage by the day because of Uber they became courteous to their passengers.
“There was a time I took a taxi from Asikoro to Maitama and it dawned on me that I had to go back to the house to pick up the parcel I was going to deliver at an office. I begged the driver to take me back that I would pay him for his time. He refused, insisting I should pay him the initially agreed sum before he would take me. I asked the driver to stop and paid him for the distance covered. I then took another cab one back to the house but if it was an Uber I doubt if it would have been so,” she said.
Changing the narrative
The only way to change the narrative according to Baz is for Uber to increase the rate, noting that if it is done it would be a win-win situation for Uber and the drivers.
“If Uber increases the tariff, even if it’s only five people that you work with for one day you can be certain that at the end of the day you will take something reasonable home,” he maintained.
Speaking with our correspondent, another driver Amos Nwokolo, said restricting the number of new entrants into the business will address the gloat the business currently suffers.
But Baz does not see that as an option arguing that, “You cannot stop people from going into any business.”
However, for Uber clients they continue to say, “Happy days are here to stay.”
