Fuel price hike: Mixed reactions from drivers as Uber increases fares by 13%

Uber announced on Friday a 13% increase in fares to help drivers cope with the recent fuel price hike in Nigeria.

This adjustment is intended to mitigate the impact of the fuel price increase on drivers’ earnings.

However, some drivers have expressed concerns that the fare increase is insufficient compared to the over 40% rise in fuel prices. They also argue that a reduction in the commission charged by Uber, which typically ranges from 20-25%, would be more effective in alleviating their financial challenges.

In a message to drivers, Uber stated, “We understand that your operational costs may have increased due to the current macroeconomic situation and want to help ensure your earnings are protected. With this in mind, we have reflected a 13% increase in the UberX product. We are confident that this change will positively impact your earnings opportunity, and we aim to continue working on initiatives that help make Uber the app of choice for you while maintaining an affordable service for riders.”

Despite this, some drivers have criticized the fare adjustment. Rotimi Oladele commented, “If a trip was previously N1,000, the 13% increase means this same trip will now be N1,130. Does this cover the fuel price hike? This feels like modern-day slavery.”

Izuchukwu Okafor noted, “The 13% increase is fair, but it would be fairer if Uber reduced their commission. Without lowering their commission, increasing fares only benefits the company more, not the drivers.”

Paul Ojeme added that the fare increase, without a corresponding reduction in commission, doesn’t change much for drivers. “It just means that as we earn more, we pay more in commission,” he said.

The fare adjustment follows a significant rise in fuel prices by the Nigeria National Petroleum Corporation (NNPC) Limited, which recently increased the price of Premium Motor Spirit (PMS) from N617 per litre to between N855 and N897, depending on location.