Fuel

Leading ride-hailing company, <a href="http://uber.com" target="_blank" rel="noopener">Uber</a> has effected a 13 per cent increase in its fare rates on the UberX platform. This was disclosed in a mail sent by the company to drivers operating on its platform. 
According to the company, the increase was to cushion against the “current macroeconomic situation. 
“We understand that your operational cost 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 per cent increase in the UberX product,” the company said. 
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Uber also expressed its confidence that the increase will have a positive impact on driver’s earning opportunities. It also said it aims to continue on initiatives that help make Uber the app of choice for drivers while at the same time maintaining affordable services for riders as well. 
<h4 id="fuel-price-hike-and-ubers-13-increase" class="wp-block-heading">Fuel price hike and Uber’s 13% increase</h4> 
Uber’s increase in rates comes amid a perilous fuel situation in the country. A crunching fuel scarcity that lasted weeks was followed by yet another increase in the price of the commodity. From about 620 naira, fuel prices soared to about 905 naira, representing an outstanding 35 per cent increase. 
To this end, drivers have resorted to putting off their air conditioning during rides and negotiating fares outside the app rates to make ends meet. The drivers who spoke to Technext said this is imperative given the prevailing fuel scarcity situation and the recent increase in the price of petrol across the country. 
A driver, Oyebode said over the past weeks he has been driving without putting on the air conditioning to save petrol. 
“Codedly, I have in the last two to three weeks been operating without air conditioning. Yes, the majority of the riders understand and cooperate, while some don’t. In the next 2 – 3 days, I am hoping the picture will be clearer,”&nbsp;he told Technext. 
Another driver, Ajibola Vincent noted that some drivers are already adjusting their prices to be able to meet up. 
“The riders ought to bear some part of the difficulties. Some drivers have downed tools, stating that until app fares become more accommodating of current realities, they won’t be taking orders and would rather rely on offline trips. Other drivers are already self-adjusting fares as well by negotiating a higher fare with the rider to accommodate the challenges they face in getting petrol to run their vehicles to complete orders,” he said. 
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Following their unsavoury ordeals in their search for liquid gold to power their businesses, the drivers called for app companies like Uber to immediately increase rates on their platforms to reflect the current harsh economic reality. 
According to the drivers, it is not fair that they are the only ones getting crushed under the weight of fuel price increases and scarcity, a situation that has forced many of them to park their vehicles. 
According to Ajibola Vincent, the unofficial increase in pump price is affecting their earnings, making the business very unbearable. This, he says, is because ride-hailing companies have not factored the prevailing market price of petrol into the price algorithm. 
It is yet to be seen how far this 13 per cent increase by Uber would go in ameliorating the plight of the drivers. 
See also: <a href="https://technext24.com/2024/09/04/fuel-price-uber-bolt-air-conditioning/">Fuel price hike: Uber/Bolt drivers now put off air conditioning, negotiate prices off-app</a> 
The post <a href="https://technext24.com/2024/09/06/uber-increases-rates-amid-fuel-scarcity/">Uber increases rates for rides by 13% in Nigeria amid fuel scarcity and price hike</a> first appeared on <a href="https://technext24.com">Technext</a>.

Uber increases rates for rides by 13% in Nigeria amid fuel scarcity and price hike

Technext.ng

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