Uber, Bolt hike ride fares by over 100%

Two of the biggest ride-hailing cars Uber and Bolt have increased the cost of rides within Lagos and other major cities in the country by over 100%.

This is according to information gathered from riders and drivers of both ride-hailing firms in Lagos and Abuja who revealed that the hike was due to fuel scarcity that has hit major cities across the country.

The drivers opine that the fuel scarcity means fewer cars are available for riders to pick, thus creating a surge in price that is more than double the typical ride.

For example, a ride from Lekki to Ikorodu road that was typically between N2,500 and N3,000 jumped to as high as N6,000 on Sunday.

Thousands of commuters rely heavily on ride-hailing cars and bikes to move around across cities in the country. Thus, the increase in ride fares will surely hit their disposable income further denting their purchasing power.

To make matters worse, WFH policies previously adopted by companies to address Covid-19 provisions have been relaxed, meaning more people need to ride to work.

The longer the fuel scarcity persists, the harder it is for ordinary Nigerians to afford ride-hailing-based transportation.

Some drivers are also adversely affected by the increase in fares and have mostly reacted by requesting that riders pay them in cash or transfers to their accounts rather than through online payments to ride-hailing firms. The latter means they wait longer for their money and also incur higher charges.

Nigeria has been hit by fuel scarcity over the last two weeks as contaminated imported fuel caused a supply shock that has continued to persist. Long queues are still seen at major filling stations while black market operators continue to sell at nearly twice the pump price.

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Nigeria still imports petroleum products despite billions spent and promises by the Buhari administration to fix the refineries. Nigeria still subsidizes fuel despite running massive budget deficits.

The increase in general prices is not a surprise considering how perfectly correlated to fuel price increase is with transportation costs. Nigeria is also not the only country facing higher energy prices.

Globally, energy prices have increased due to the rise in crude oil prices and the escalating Russia/Ukraine war.