Nigeria Edo e-hailing drivers strike over app price war, fuel costs

e-Hailing drivers in Edo state, Nigeria, are set to begin a three-day warning strike starting Monday, July 28, 2025, under the banner of the Amalgamated Union of App-based Transporters of Nigeria (AUATON). The decision, announced by the Edo State Chapter’s chairman, Comrade Russell Eghaghe, follows growing dissatisfaction with app-based pricing structures and fuel costs. Drivers allege that fare reductions by platforms like inDrive and Bolt have eroded their earnings, with fares for common routes such as GRA Benin City to UNIBEN main campus now as low as N1,500–N2,000, despite fuel prices exceeding N900 per litre [1]. The union warns that without intervention, tensions could escalate, potentially spilling into public unrest.

The strike, Eghaghe explained, aims to compel app companies to revise pricing models and disclose fare calculation mechanisms. He criticized inDrive for introducing a “price negotiation” system that allows riders to lower fares while imposing caps on drivers, a move Bolt allegedly replicated. This price war, he argued, has left drivers unable to cover operational costs, including high fuel and CNG expenses, while app commissions further strain their incomes. “Drivers are being trampled like grass in a battle between two elephants,” Eghaghe stated, emphasizing that the protest seeks to force a “basic minimum fare per kilometre and minute” to ensure sustainable earnings [1].

The union’s strategy involves a 24-hour strike on the first day, followed by partial boycotts during peak hours (6 a.m.–6 p.m.) on the subsequent two days. Eghaghe expressed confidence in compliance, noting widespread support within the driver community. Key demands include full transparency in pricing algorithms, adjustments for traffic-related delays, and a halt to aggressive fare undercutting.

Analysis: The strike underscores systemic challenges in Nigeria’s gig economy, where app-driven pricing models often prioritize rider convenience over driver welfare. The Edo state situation mirrors broader regional tensions between ride-hailing platforms and their workforce. While inDrive and Bolt have historically competed on price to expand market share, the lack of regulatory oversight has exacerbated imbalances. Eghaghe’s criticism of opaque pricing mechanisms highlights a recurring issue in the sector: the absence of clear guidelines for fare adjustments or driver compensation.

The protest also reflects the fragility of informal labor structures in Nigeria. With drivers bearing upfront costs for vehicle ownership, fuel, and maintenance, fare erosion directly impacts their livelihoods. The union’s emphasis on a “human face” in business practices signals a shift toward organized advocacy, potentially setting a precedent for similar movements across the country. However, the success of the strike hinges on app companies’ willingness to engage, a hurdle given inDrive’s lack of a physical office in Benin City and Bolt’s alleged opacity in operations [1].

By demanding minimum fare thresholds and operational transparency, AUATON is positioning itself as a critical actor in shaping Nigeria’s digital labor landscape. If unresolved, the standoff could spur legislative action, as seen in Lagos where the Nigeria Labour Congress recently called for stricter oversight of ride-hailing firms [1]. The Edo state strike thus serves as a litmus test for balancing technological innovation with worker rights in an increasingly digitized economy.

Source: [1] [e-Hailing drivers in Edo state to commence 3 days warning strike from Monday July 28] [https://coinmarketcap.com/community/articles/68847ce80782906452f59f8f/]