Weekly remittance increase proposed by Moove triggers worries among Uber drivers
In the bustling city of Lagos, Moove drivers are bracing for potential changes, as the ride-hailing company may be re-evaluating its business in response to the prevailing economic situation and potential losses.
Recent developments suggest that Moove is reviewing its product pricing, aiming to ensure that drivers take home a sustainable income. However, drivers have claimed that their weekly fees have never been reviewed.
The increase is said to be due to Moove's rising operating costs. This comes as a concern for drivers, as they are already operating under stringent conditions and restrictions. For instance, they are only allowed to operate the Uber app, limiting their potential earnings and customer base.
Moreover, Moove drivers are financed by the company to use Suzuki S-presso vehicles, and they face potential increases in weekly remittances. The current weekly remittance stands at 56,400 naira, excluding a 25% commission deducted from fares.
These drivers have previously protested against increases, including a hike of hire-purchase vehicle payment from N8 million to N12 million, and a daily remittance increase from 35% of gross income to N14,400 per day.
The interest rates agreed within the repayment limit have been eroded by inflation, making them unsustainable. To add to this, personal expenses like fuel and data purchases amount to a total of N66,000 per week for Moove drivers.
In February 2023, Moove-Uber Suzuki drivers protested against what they described as injustices, including being expected to pay the full 12 million capital for a repossessed vehicle, despite the previous user possibly having paid part of the cost or leaving damages.
At the time of the report, Moove has not responded to requests for elaboration on the current development. It is also unclear which company representatives Moove appointed in recent weeks to inform drivers about a possible increase in weekly contributions.
One thing is certain, though - Moove uses productivity data from Uber to provide revenue-based financing products with no upfront deposits. However, the company reserves the power to deactivate any vehicle at any time for any reason, potentially leading to loss of initial deposit, equity, and vehicle.
As the situation unfolds, Moove drivers continue to navigate these challenges, hoping for a fair resolution that ensures their financial sustainability.
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