Nigeria and India's New Playbook on Uber
Typically, on ride-hailing fares, in Nigeria and most other places, Uber drivers get 75% of the fare while the remaining 25% goes to Uber. But India has a new law: “Ride-hailing firms such as Ola and Uber can only draw a fee of up to 20% on ride fares in India, New Delhi said in guidelines on Friday”.
Ujjwal Chaudhry, an associate partner at Bangalore-based marketing research consulting firm Redseer, said the guidelines by the government will have a mixed impact.
“While it is positive in terms of formalizing the sector as well as increasing the consumer trust on aggregators through improved safety regulations. But, overall the impact of these guidelines on the ecosystem growth are negative as capping surge and platform fee will ultimately lead to reduced earnings for 5 Lac (500,000) drivers (currently on these platforms) and will also lead to increased prices and higher wait times for the 6-8 crore (60 to 80 million) consumers who use it for their mobility and commute needs,” he said in a statement.
Personally, I do not like it when governments begin to dictate prices on non-monopolistic products and services; I mean there are many options to move from one place to another with traditional taxis still available. Yet, India might have seen some data to make this call: What do you think of this India’s playbook and its potential application in Nigeria?
