The news:
- Comrade Ibrahim Ayoade, the factional General Secretary of the Amalgamated Union of App-based Transporters of Nigeria (AUATON), has disclosed that the Nigerian e-hailing union can’t own e-hailing app companies under the law.
- This clarification became necessary following the demands of e-hailing drivers to own and run their apps.
- The opposing faction of the union, led by Adedamola Adeniran, however, reportedly insists that they would explore the option of launching their apps if platforms like Uber, Bolt and InDrive continue to implement unfavourable policies.
In addition to the law of the country, Comrade Ayoade also noted that the union’s constitution further prohibits the leadership of the AUATON from operating ride-sharing companies.
“It is important to note that, constitutionally, unions cannot own app companies as we are designated as regulators under the law,” he explained.
Comrade Ayoade stated that any party under the union seeking to own app companies would be going against AUATON’s legal framework and responsibilities as regulators as the union is legally mandated to act as regulators, not industry players.
Earlier in the month, Joseph Olawale, the union’s Chairman of Media Publicity and Technical Committee, a member of the opposing faction, said if the ride-hailing platforms continue to implement policies that only benefit them and empower them to dictate all terms even when the cars aren't theirs, the union might be forced to reduce the disadvantage for its drivers by launching its own app.
To drive home his point, Olawale cited other countries where drivers have pooled together to launch e-hailing companies to rival big players like Uber and Bolt, Lyft and others.
In December 2020, for example, some New York drivers launched the Drivers Cooperative known as the Co-Op Ride app to offer drivers more of their earnings by redistributing profits with an annual dividend and auto loan refinancing.
The Co-Op Ride, which has 40,000 downloads and 6,000 members, is US drivers who are not unionists, making it potentially different from what the AUATON might launch.
A portion of the union’s constitution prohibits elected leaders, paid trade union officials, employees, and the AUATON itself from owning or having a substantial interest in any business enterprise in the industry the union regulates.
Now, while the law forbids AUATON from operating any ride-hailing platform, it so far seems to say nothing prohibiting drivers outside the union from launching one.
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