Ride-hailing services in Lagos could face significant disruption as the Amalgamated Union of App-Based Transporters of Nigeria (AUATON), Lagos State Council, has directed drivers operating on Bolt and inDrive platforms to withdraw their services indefinitely over concerns about fares, commissions, welfare and rising operating costs.
The planned industrial action, which the union said would begin today, is intended to pressure the ride-hailing companies to address what it described as persistent challenges affecting drivers’ earnings and working conditions.
However, Bolt has called for constructive engagement with the union, proposing a roundtable discussion with AUATON and driver representatives early next week to examine the concerns and explore possible solutions.
The dispute highlights growing tensions within Nigeria’s app-based transport sector, where drivers rely on digital platforms to connect with passengers but must also contend with rising fuel prices, vehicle maintenance expenses and other costs associated with keeping their businesses operational.
In a statement signed by its Public Relations Officer, Steven Iwindoye, AUATON accused ride-hailing platforms of failing to adequately account for the economic realities confronting drivers, despite repeated complaints about fare structures, platform commissions, welfare provisions and protection against arbitrary deactivation.
The union said the planned shutdown would continue indefinitely until its demands were addressed, urging drivers to withdraw their services as part of a collective effort to secure improved working conditions.
According to AUATON, drivers bear the financial burden of fuel, vehicle maintenance, tyres, insurance, mobile data, vehicle financing and depreciation, leaving many struggling to earn sustainable incomes after meeting their operational expenses.
The union's position is that the financial risks associated with providing transportation services should not fall disproportionately on drivers while digital platforms retain control over important aspects of fares, commissions and access to customers.
Bolt proposes roundtable with drivers
Responding to the planned action, Bolt said it recognised the economic pressures facing drivers and the importance of maintaining a sustainable operating environment in which they could earn and work successfully.
In a statement issued yesterday, the company acknowledged AUATON's concerns about driver earnings, operating costs, platform charges, transparency and welfare, adding that it continued to review opportunities to improve the driver experience and strengthen existing support mechanisms.
Bolt's Head of Regulatory and Policy for Africa, Weyinmi Aghadiuno, said the company took the issues seriously and believed dialogue offered the best route to resolving the dispute.
“Drivers are central to the ride-hailing ecosystem, and we recognise the economic realities they are navigating. We take the concerns being raised seriously and believe the best way forward is through constructive, open and solution-oriented engagement,” Aghadiuno said.
She explained that the company intended to listen to drivers, understand the difficulties they faced and identify practical measures to improve their experience while maintaining safe, reliable and accessible ride-hailing services.
As part of its response, Bolt said it was committed to engaging AUATON and driver representatives in a roundtable discussion early next week.
The proposed meeting is expected to provide an opportunity for both parties to exchange views, clarify the issues in dispute and explore areas where cooperation could lead to improvements in drivers' working conditions.
Bolt also urged drivers to continue providing services to passengers while discussions were underway, expressing confidence that open communication and mutual understanding could help strengthen relationships between drivers and the platforms.
“We believe meaningful progress is best achieved through open communication, mutual understanding and solutions that consider the interests of drivers, passengers and the wider mobility ecosystem,” the company said.
The company's appeal for continued service delivery comes as the union maintains its position that drivers should withdraw their services until meaningful action is taken on their demands.
Whether the proposed engagement will persuade the union to suspend or reconsider the planned action remains uncertain.
Union raises concerns over earnings and operating costs
At the centre of the dispute is the financial viability of ride-hailing operations for drivers, many of whom must cover substantial recurring expenses before determining how much they can retain as income.
Fuel consumption, vehicle servicing, tyre replacement, insurance premiums and financing obligations can significantly reduce earnings, particularly when drivers face fluctuating demand or spend extended periods waiting for passengers.
Drivers may also experience additional costs arising from vehicle depreciation and the need to keep their cars in suitable condition for commercial transportation.
AUATON argued that these expenses must be considered when determining fares and platform charges, maintaining that drivers need a more sustainable balance between operating costs and the income generated from completed trips.
The union also expressed concern about welfare provisions and the circumstances under which drivers can lose access to the platforms on which they depend for business.
For drivers whose livelihoods rely heavily on ride-hailing applications, deactivation can interrupt access to customers and income. AUATON is therefore seeking stronger protections against what it describes as arbitrary deactivation, alongside greater transparency and accountability in platform operations.
The dispute raises broader questions about the relationship between digital transport companies and the drivers who provide the vehicles, labour and day-to-day services on which their businesses depend.
While ride-hailing platforms provide access to customers, digital payment systems and trip-matching technology, drivers remain responsible for many of the direct costs associated with transportation.
The union maintains that a sustainable industry must take these contributions and financial responsibilities into account when determining the terms under which drivers operate.
AUATON calls for government intervention
Beyond its demands to the ride-hailing companies, AUATON called on the Lagos State Government, relevant federal authorities and labour institutions to intervene in the dispute.
The union warned that the sector could become increasingly difficult to sustain if drivers continued to face financial hardship while bearing the costs of providing transportation services.
“Technology must empower workers, not become a tool for modern-day economic exploitation,” the union said.
The statement reflects AUATON's argument that the expansion of technology-driven transportation should deliver benefits not only to platforms and passengers but also to the workers whose services make the system possible.
The union also disclosed that it was exploring alternative arrangements that would prioritise drivers' economic interests, transparency, accountability and independence.
Although it did not provide detailed information about the proposed alternatives, the announcement suggests that the union is considering broader ways of organising app-based transport services around drivers' concerns.
AUATON urged affected drivers to remain united, disciplined and peaceful during the planned industrial action, describing the shutdown as a statement about the value of their labour and the need for improved working conditions.
The union's call for government intervention could also bring renewed attention to questions about how app-based transport services should be regulated and how disputes between platforms and drivers should be addressed.
Passengers could face disruption
The planned withdrawal of services could affect commuters who rely on ride-hailing applications for daily transportation across Lagos, particularly if a substantial proportion of drivers participate.
Passengers could experience longer waiting times, fewer available vehicles and difficulties securing rides during peak periods. The scale of any disruption, however, will depend on the level of participation in the action and the availability of drivers who continue operating.
The implications could extend to drivers themselves, many of whom may lose income during the shutdown. This creates a difficult balance between the immediate financial consequences of withdrawing services and the union's objective of securing more sustainable operating conditions.
For Bolt, the proposed roundtable offers an opportunity to address drivers' concerns before the dispute escalates further. For AUATON, the central question will be whether engagement produces tangible progress on the issues it has raised.
The position of inDrive on the planned shutdown and the specific demands presented by AUATON was not included in the statements available for this report.
As the dispute unfolds, attention will focus on whether the proposed discussions can bridge the gap between the union's demand for improved conditions and the platforms' approach to resolving concerns through dialogue.
For now, AUATON has maintained its call for an indefinite withdrawal of services, while Bolt has urged drivers to remain on the road and participate in discussions aimed at finding common ground. The outcome could have implications not only for drivers and ride-hailing companies but also for thousands of Lagos residents who depend on app-based transportation.