Uber raises driver earnings by 10% following a data-sharing dispute in Lagos

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April 3, 2024
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2 min read
Uber
Uber application icon on black screen of smartphone with notebooks and cup of coffee on a road map
  • On April 2, 2024, Uber increased driver earnings on its ride-hailing platform by 10% per kilometre and per minute fare.
  • The company stated that the increase communicated to drivers was due to "the current macroeconomic situation."
  • This came two weeks after the Lagos State Government and the ride-hailing company disagreed on data sharing, prompting drivers in the city to boycott the Uber app.

On March 22, 2024, the Lagos State Government stated that Uber breached a data-sharing agreement with ride-hailing companies in the city, which required real-time access to trip and location data via backend API integration. 

Uber stated that it shares required data with the government on a daily basis but has yet to comply with real-time data requests. Meanwhile, other ride-hailing companies in the city, including Bolt, have complied with the request.

Following Uber's noncompliance, Lagos authorities began impounding Uber-related cars, particularly those financed by Moove — a Nigerian vehicle financing platform — because they all have distinct appearances and are known to operate on the Uber platform.

Meanwhile, in March 2024, Uber led a $100 million Series B round to fund Moove's expansion into new markets. This came one month after Uber announced its intention to invest in the platform. 

However, the impounding action by the Lagos authorities led to a potential driver boycott as the ride hailing company reportedly sought a three-month extension to comply with the data-sharing agreement it signed with the Lagos State Government.

While Uber claims that the earnings increase is intended to mitigate the effects of the current economic situation, most drivers believe it is an attempt to entice them back to the app.

Specifically, the message sent to drivers read, “From April 2nd, 2024, we will be reflecting increased fares on the UberX product to give you the best possible earning opportunity. Weekday and weekend fare: Per kilometre fare: 10% increase. Per minute fare: 10% increase.”

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