NLC Challenges Uber and Bolt Over High Commission Rates in Nigeria
The Nigerian Labour Congress (NLC) has officially challenged ride-hailing giants Uber and Bolt, demanding they provide a clear justification for their commission rates, which range from 20% to 25%. This move escalates the ongoing dispute between the platforms and their drivers, who have long voiced concerns about the financial unsustainability of the current model. The NLC’s intervention places the operational practices of these major players in the African tech and gig economy under intense scrutiny, questioning the fairness of a system where drivers bear the majority of the financial burden.
Unfair Burden: Drivers Cover All Costs, Platforms Take a Cut
At the core of the NLC’s argument is the assertion that drivers are being unfairly treated as independent partners while shouldering all the responsibilities of an employee. According to Lagos NLC chairperson, Comrade Agnes Sessi, the current commission structure is exploitative. She highlighted that drivers are solely responsible for all operational expenses, including purchasing their vehicles, daily fueling, ongoing maintenance, and even dealing with law enforcement issues. In contrast, the app companies’ primary role is to connect these drivers with riders, for which they claim a substantial portion of every fare without contributing to the essential costs of the service, such as providing cars, fuel, or meaningful driver support. The NLC insists these individuals are workers deserving of better protection and fairer compensation.
By taking this militant stand, the Nigerian Labour Congress has put the onus on Uber and Bolt to defend their business models. This challenge is not just about commission percentages; it is a fundamental questioning of the gig economy’s structure in Nigeria. The outcome of this confrontation could set a significant precedent for driver rights and platform responsibilities across Africa’s rapidly growing ride-hailing market, potentially forcing a re-evaluation of how profits and risks are shared between tech companies and their workforce.
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