Nigeria’s top ride-hailing services and logistics firms have increased their trip service charges owing to the lingering fuel scarcity amid low patronage.
The situation is compounding the woes of commuters who rely on these platforms for their mobility solutions.
Petrol pump prices have risen from the regulated price of N165 per litre to between N250 and N300 depending on filling stations and locations.
According to information gathered from riders and drivers of both ride-hailing apps in Lagos, persistent scarcity of fuel scarcity has prompted a hike in their trip service charge across the country.
The drivers noted that the scarcity has also reduced the number of cars available for riders as many spend long hours in filling stations queuing to buy fuel.
They added that the price surge has reduced patronage, especially in Lagos where the fuel queues are causing gridlock.
A ride from Ikeja to Ojuelegba by Bolt or Uber was typically between N1,900 and N2,500 and has jumped to as high as N2900- N3,100, and Festac to Ketu was N3,000-N4,500, now cost N5,100- N6,500.
“With the increase in the price of this ride-hailing, I have opted back to use public transport, even though that has increased, it can’t be compared to the increase on the app,” Fola Oyebanji a regular user said.
Tunji Adegoroye, a regular user of Bolt and Uber said the persistent scarcity of fuel is compounding the woes of Nigerians who are struggling to survive, noting he has stopped using the services of ride-hailing to cut down on his expenses.
To retain its customer base amidst rising competition in the market, the ride-hailing app introduced promo prices between 15-20 percent slash of the actual price.
Read also: Naira, fuel scarcity: Wind of revolution looms
Tunde Abioye, a Bolt driver noted that the first quarter of the year is usually slow but with the rising price and scarcity of fuel, things are harder.
“I used to boast N70,000 in my account after working for three days, with expenses taken out, but now, I can hardly boost N40,000. The fuel crisis is making things and the business not profitable, coupled with the promo slash on the app,” Abioye said.
The country’s inflation rate, which is at a 17-year high, has increased the cost of doing business, translating to high delivery costs for cash-strapped consumers.
Logistics players in the country have complained about the fuel crisis translating to an increase in delivery goods and have had low patronage.
The average delivery cost has risen from N500 to N1000-N2,000, depending on the location within the state.
Bukola Adegbesan, a student, said she intended to buy food that cost N3,500 but was informed she had to pay N1,500 to have it delivered. She instantly cancelled the food order.
“I had to cancel an order for food, because of the increase in delivery fee, paying N1,500 for delivery is a lot,” Adegbesan said.
Amanda Etuk, one of the co-founders of Messenger. ng said logistics businesses strive on volumes, noting that the cost of doing business has increased, thus making it difficult for businesses with enough volumes to break even.
Olamide Adeyeye, a Lagos-based economist said that the low demand is not good for e-commerce as logistics is a major missing link in the sector.
“Transportation is one way to get products to the last mile customers. But if organisations in that space are folding up, then what that means is fewer jobs,” he said.
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