The Lagos State Government has announced plans to commence the regulations of ride-hailing startups operating in the state.
Under the new regulations, ride-hailing operators like Uber and Bolt that have over 1000 drivers henceforth will pay ₦25 million licensing fee and ₦10 million annual renewal fee.
Those that have less than 1000 drivers, they will pay a licensing fee of ₦10 million and an annual renewal fee of ₦5 million. Operators who directly own their cars and employ their drivers will pay only the license fee of ₦5 million if such operators have below 50 drivers. Those who have over 50 drivers will pay ₦10 million for the operating license.
Additionally, ride-hailing operators are also expected to pay 10 percent “service tax” on “each transaction paid by the passengers” and are mandated to renew their licenses three months before the expiration of the current license. These regulations are contained in the Guidelines For Online Hailing Business Operation of Taxi in Lagos State 2020.
Besides the licensing and the renewal fee, the Ministry also stated in the online ride-hailing business guideline that they want “Access to e-Hailing Taxi Companies’ database (e.g drivers details, accident reports, etc). The Ministry and her Agencies shall have access to the database of the operators/companies operating e-Hailing Taxi Business in Lagos State. This won’t go down well with the likes of Uber and Bolt who would want to protect the privacy of their drivers and riders.
The spokesperson for Lagos State Ministry of Transport Bolanle Ogunlola confirmed that the new regulations will start on August 20. She said the enforcement of the guidelines will not start until after a stakeholder meeting is held.
Ride-hailing services in Lagos: Motorcycles and Cars
The Lagos State Government appears to be hostile to ride-hailing services operating in the state. Few months ago, the government placed a blanket ban on motorcycle-hailing startups in the state. The likes of Gokada, Max Okada and ORide had to either shut down or pivot into logistics and deliveries after spending millions of dollars.
Now, the government is going after ride-hailing startups with a ₦25 million licensing fee. The ride-hailing startups have two options-move out of Lagos to other Nigerian cities or pay the licensing fee. If the later is the case, riders will have to prepare for an increment in ride fares.
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