Business
Passengers React to Rising E-Hailing Fares Amid Economic Strain
Recent fare increases by Bolt have sparked backlash from both passengers and drivers in Nigeria, highlighting the growing affordability crisis in the e-hailing industry.
Bolt, an e-hailing service that connects passengers with drivers via a mobile app, announced fare hikes due to a significant rise in petrol prices, which have surged to around N1,000 per litre in some areas. As of August 30, 2024, the minimum fare in Abuja rose from N1,300 to N1,495, alongside increases in other fare components.
While Bolt claims these adjustments aim to improve drivers’ earnings amidst rising operational costs, drivers have voiced concerns that the increased fares could deter passengers, leading to lower patronage and potential loss of income. Daniel Simon, a Bolt driver, criticized the company’s focus on passenger needs over those of drivers, expressing frustration about high commission rates that diminish their take-home earnings.
“Even with the fare increases, we still face high charges from Bolt,” Simon said. “After paying for fuel and other expenses, we often end up with little to take home.”
Maurice Michael, another driver, acknowledged the need for fair compensation but warned that escalating fares could push passengers to seek alternative transport options, ultimately affecting drivers’ earnings in the long run.
On the passenger side, many users have expressed dissatisfaction with the fare hikes, seeing them as an added financial burden. Miriam Musa, a Bolt user, lamented, “Every time I check the app, the prices keep going up. It’s becoming increasingly hard to budget for transportation.”
Passengers like Chucks Mark emphasized the need for Bolt to consider alternatives that improve driver earnings without imposing additional costs on customers. “Bolt should explore ways to support drivers that don’t directly affect us, like reducing commission rates or offering bonuses during peak times,” Mark suggested.
Bolt’s Communication Manager, Femi Adeyemo, explained that the fare increases were essential for drivers to remain profitable in light of economic challenges. He confirmed that despite the fare hikes, Bolt’s commission rates have not changed.
The fare increases have resulted in mixed reactions, with drivers welcoming the adjustments as necessary to cover rising costs, while passengers voice concerns over the impact on their budgets. As the debate continues, both groups seek a balanced solution that addresses their respective needs without compromising service affordability.
Former Kaduna Central Senator Shehu Sani has criticized the World Bank for worsening Nigeria’s economic difficulties. In a post shared on X, Sani accused the institution of projecting that Nigeria’s hardship would extend for another 15 years before the country could reach a better economic future. He questioned how many Nigerians would be left to enjoy that future, and how many African nations the World Bank has successfully helped to prosperity.
Sani’s remarks follow the World Bank’s latest *Africa’s Pulse* report, which forecasts that the Nigerian Naira will be among the worst-performing currencies in Sub-Saharan Africa by August 2024. The report placed the Naira’s decline alongside that of the Ethiopian Birr and South Sudanese Pound.
Heirs Insurance Group (HIG) recently announced impressive financial results for the 2023 fiscal year, marking significant growth across all key metrics. The Group’s Gross Written Premium (GWP) surged by 59.3%, from N19.9 billion in 2022 to N31.7 billion in 2023. This remarkable performance underscores HIG’s resilience and operational efficiency, further solidifying its position as one of Nigeria’s fastest-growing insurance firms.
Heirs General Insurance (HGI) saw a 77% increase in GWP, reaching N12 billion in 2023. HGI’s profit before tax (PBT) also rose by 203%, reflecting the company’s effective cost management. Similarly, Heirs Life Assurance (HLA) reported a 71% GWP increase and a staggering 395% rise in PBT. Both companies have demonstrated a strong commitment to customer satisfaction, disbursing billions in claims.
Beyond financial success, HIG actively engages in corporate social responsibility (CSR) projects, contributing over N100 million to education, community development, and financial literacy. With plans for future expansion and innovation, HIG is poised to remain a key player in Nigeria’s evolving insurance market.
Federal Capital Territory (FCT) Minister, Nyesom Wike, has called on Nigerians to fulfill their tax obligations, emphasizing that government revenue is essential for delivering social services. Wike made this appeal during the inaugural Abuja Business and Investment Summit, held in Abuja on Wednesday.
Speaking on the summit’s theme, “Optimising Investment Through Partnerships,” Wike stressed the importance of collaboration to generate investment opportunities. He dismissed the misconception that the government does not need revenue, explaining that taxes are crucial for funding public services.
Wike reiterated that both investors and the government must benefit from such partnerships, ensuring that both parties “go home smiling” through a fair exchange of services and taxes.
Van Vicker Celebrates 21st Wedding Anniversary: “I Have No Regrets”
Davido Declares ‘Timeless’ His Best Album
‘Adire’ Secures Four Nominations at the Best of Nollywood Awards
-
Business12 hours agoOkpella Monarch: Obaseki Ratified Kingmakers Decision, End 5years leadership Vacuum
-
News24 hours agoDemolition: Press Under Siege As Taraba Govt Issues Ban Memo
-
Banking8 hours agoFree Food Saga: Akpabio quoted out of context-CSO
-
Foreign13 hours agoSci-tech innovation fuels China’s high-quality development
-
Entertainment5 hours agoDavido Declares ‘Timeless’ His Best Album
-
Entertainment5 hours ago‘Adire’ Secures Four Nominations at the Best of Nollywood Awards
-
Foreign7 hours agoQinling Mountains better safeguarded with comprehensive digital platform
-
Foreign7 hours agoExpressway service station in Shandong achieves carbon neutrality