The Amalgamated Union of App-Based Transporters of Nigeria says the departure of the ride-hailing company should prompt a wider review of regulation, competition and worker protection in Nigeria’s digital mobility sector…….
The Amalgamated Union of App-Based Transporters of Nigeria (AUATON) has described Uber’s planned exit from Nigeria as a major development for the country’s app-based transportation industry, warning that its implications extend beyond the departure of a single company.
In a statement signed by the Lagos State Chairman of AUATON, Jaiyesimi Azeez “Makavelli”, the union said the development should compel government and other industry stakeholders to examine the conditions under which digital mobility companies operate and the impact on workers who depend on them for their livelihoods.
Uber has operated in Nigeria for about 12 years, entering the Lagos market in 2014. Its departure is expected to affect drivers, riders, employees, fleet partners and other businesses that have developed around its platform.
The union said the welfare of drivers should be a major priority during the transition, noting that many of them have invested heavily in vehicles, fuel, maintenance and technology to provide transportation services.
“Government and other industry stakeholders must ensure that affected drivers are not simply left to fend for themselves,” the union said, stressing that the affected drivers are Nigerian workers whose livelihoods are tied to the platform.
AUATON also raised concerns about the potential impact of Uber’s exit on competition within the ride-hailing market.
With one of the industry’s major operators leaving Nigeria, the union said passengers could face fewer choices as well as possible changes in fares and service conditions.
It therefore urged regulators to ensure that competition remains healthy and that consumers are not placed at a disadvantage as the market adjusts to the development.
AUATON Calls For Stronger Regulation
Beyond the immediate impact of Uber’s departure, the union described the development as a warning for Nigeria’s digital mobility sector.
According to AUATON, the country cannot develop a sustainable app-based transportation industry if companies can enter and leave the market while drivers who provide the actual services continue to shoulder significant risks.
The union called for stronger regulation, greater transparency in pricing and commissions, better protection for drivers, effective dispute-resolution mechanisms and policies capable of attracting sustainable investment into the sector.
It also identified an opportunity for indigenous Nigerian technology and mobility companies to expand their presence in the market.
However, AUATON cautioned that local operators should not merely replicate the challenges associated with existing platforms.
“The future must be built around a fairer partnership between platforms, drivers, passengers and government,” the union said.
‘Drivers Must Be Able To Earn Sustainably’
The union said it had consistently advocated for the welfare, dignity and economic security of app-based transport workers.
It added that concerns previously raised by drivers during its industrial actions, including issues surrounding fares, commissions and rising operational costs, remain unresolved and relevant to the future of the sector.
“Nigerian drivers need a transportation ecosystem in which they can work and earn sustainably,” AUATON said.
The union also acknowledged Uber’s position that its decision to leave Nigeria was driven by changing business priorities and its investment strategy.
AUATON said it also noted the company’s commitment to supporting affected drivers and workers during the transition, but urged Uber to ensure that the commitment is meaningful and transparent.
Union Wants Stakeholders’ Dialogue
The union urged the Federal Government not to view Uber’s exit solely as a corporate decision, but as an opportunity to undertake a broader assessment of Nigeria’s app-based transportation ecosystem.
It called for a stakeholders’ dialogue involving government, regulators, mobility platforms, AUATON, riders, fleet owners and other industry participants to assess the implications of the exit and develop policies that can protect workers while promoting responsible investment and innovation.
“The app-based transportation industry must survive beyond individual platforms. The workers must remain at the centre of it,” the union said.
