Uber, Bolt & Others To Pay N10m License Fee, 10% Fee On Each Trip To Lagos State Government – AutoReportNG
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Uber, Bolt & Others To Pay N10m License Fee, 10% Fee On Each Trip To Lagos State Government

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The Lagos State Government may be beaming its searchlight on the ride-hailing companies in Lagos which are Uber, Bolt, and others. According to a report, the Lagos State Government has slammed a whopping 10million naira license fee on all ride-sharing companies in the state.

Uber ride sharing lagos

It will be recalled that last month, Lagos enforced a ban on all forms of commercial motorcycles (okada) in 15 local government areas (LGAs), a decision that was met with widespread protests from riders and commuters alike.

This decision heavily restricted the activities of bike-hailing platforms such as MAX, Gokada, and ORide in Lagos, despite pleas from these companies that they shouldn’t be regarded as just okada riders.

The drivers under the UBER and Bolt platform cried out over harassment of the VIO officials on their vehicles, the crackdown which resulted in the impounding of vehicles belonging to several Uber drivers was reported because the drivers didn’t have hackney permits and Lagos State Drivers’ Institute (LASDRI) certification.

ride-hailing

With the new law of the Lagos State Government, which comes into effect on March 1, drivers on ride-hailing platforms are required to have LASDRI card and a driver badge issued by the Department of Public Transport and Commuter Services of the Ministry of Transport.

The vehicles on such platforms must have hackney permits issued by the Lagos State Motor Vehicle Administration Agency and be fitted with a tag to be issued by the aforementioned department.

According to reports, while negotiations are ongoing between the state and ride-hailing operators, the new regulations will mandate third-party operators like Uber and Bolt to pay N10 million naira and an annual renewal fee of N5 million if they have less than 1000 drivers.

Third-party operators that have more than 1000 drivers will pay N25 million licensing fee and N10 million annual renewal fee.

LASDRI Card

Operators who directly own their cars and employ their drivers will pay only the license fee of N5 million if such operators have below 50 drivers. Those who have more than 50 drivers will pay N10 million for the operating license. Under the new regulation, the state government will also earn 10% on the fee of each trip.
“Discussions with the Lagos State Ministry of Transport are still ongoing and we would continue to work with relevant stakeholders to build a strong ride-hailing with your welfare at heart,” Bolt said in a message to its drivers and riders.

The spokesperson for Uber in West Africa Efosa Aiyevbomwan said he cannot speak for the state government when he was asked if Uber was aware of the new regulations.

The new regulation will become effective exactly a month from the day the state government banned commercial tricycles and motorcycles, popularly known as Okada from operating in six local governments – Apapa, Eti-Osa, Ikeja, Lagos Island, Lagos Mainland, and Surulere.

 


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