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The Lagos State government has reversed the plan to impose a 10 percent service charge on every trip made through ride-hailing platforms like Uber and Bolt. The Lagos Government also reduced the license and renewal fee for ride-hailing startups to operate in the state by 20%.

The Commissioner for Transport, Dr. Frederic Oladeinde, made this known to newsmen, after a three-hour meeting of Gov. Babajide Sanwo-Olu, some executive council members and e-hailing operators at Lagos House, Marina.

Oladeinde said that the state government had reached an agreement with operators to now charge N20 per trip instead of 10 percent of the charges for each trip. He said that the N20 per trip charge, which would take effect from Aug. 27, 2020, would be known as Road Improvement Fund.

The commissioner said that other agreements reached include a 20 percent reduction in the operating and renewal license fees. This means that the licensing fee for ride-hailing firms like Uber and Bolt that have over 1000 drivers is now N20 million instead of N25 million while the renewal fee is N8 million instead of N10 million.

He added that drivers had been urged to complete their documentation within the next 90 days.

Oladeinde said that the documents that the drivers should acquire include the Lagos State Registration Agency card and driver’s license. According to him, drivers who fail to comply will be banned from operating, among other penalties. He said that a one-stop-shop had been created to ensure that drivers process all the required documents easily.

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Oladeinde said that it was also agreed that the operators should take comprehensive insurance for each vehicle, while the driver took a third party insurance.

He also said that the operators had been charged to do a background check on each driver, which the state government hoped would promote safety.

The commissioner said that the operators were also mandated to provide data about each trip made on their platforms every week. According to him, the data would help the government to plan better on areas it should deploy resources.

Also speaking, the Commissioner for Information and strategy, Mr Gbenga Omotoso said there was no strain in the relationship between the state government and the operators.

Omotoso said that steps taken by the state government were aimed at providing a good environment for businesses to thrive, aside promoting safety and security of residents and commuters.

He said the regulation was not about imposing taxes but safety.

The President of Professional E-hailing Drivers and Private Owners Association, Idris Shonuga implored e-hailing drivers to comply with the state government directives. Shonuga lauded the state government for helping to resolve all the grey areas.

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