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Lagos reverses proposed 10% service charge for trips on e-hailing platforms

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Following the criticism that trailed its contentious proposed 10 percent service charge on every trip made through e-hailing platforms like Uber and Bolt, among others, the Lagos State has reversed the proposed increase.

The state commissioner for transportation, Frederic Oladeinde who disclosed this, said the commencement date for the implementation of the levies to be imposed on the operators was moved by a week to August 27, 2020.

He said the state government has reached an agreement with operators to now charge N20 per trip instead of 20 percent of the charges for each trip, adding that the N20 per trip charges would be housed under the Road Improvement Fund.

Oladeinde said this understanding was arrived at after the state governor, Babajide Sanwo-Olu along with some executive council members held a meeting with e-hailing operators.

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According to him, other agreements reached include a 20 percent reduction in the operating and renewal license fees, aside drivers completing their documentation within the next 90 days.

He also noted that the documents the drivers should acquire include the Lagos State Registration Agency card, drivers license, among other documents, saying drivers who failed to comply would be banned from operating among other penalties

The commissioner said that a one-stop-shop had been created to ensure that the drivers all the required documents easily, revealing that it was also agreed that the operators should take comprehensive insurance for each vehicle, while the driver takes third party insurance.

He also said the operators had been told to do a background check on each driver, which the state government hopes would promote safety.

The commissioner said the operators were also mandated to provide data about each trip made on their platforms every week, stating that the data would help the government to plan better on areas it should deploy resources.

Speaking on the development, president of professional e-hailing drivers, and private owners association, Idris Shonuga implored e-hailing drivers to comply with the state government directives. He applauded the state government for helping to resolve all the grey areas.

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