E-Hailing drivers using vehicle financing from Moove alongside the Uber platform have suspended their work in protest of a sharp 100% increase in their weekly remittance amounts.
The disruption began in Maryland, Lagos, as these drivers voiced frustration over the steep rise from 56,400 naira to 112,200 naira for weekly payments tied to their Suzuki S-Presso cars.
The affected drivers attribute their dissatisfaction not only to the substantial hike but also to what they describe as an unbalanced breakdown of costs within the new payment structure. They demand that Moove reconsider and roll back the increase, which they see as unfair, especially as the repayment period for owning the vehicles remains unchanged and some drivers did not receive brand-new cars.
These drivers acquired their cars through a financing plan requiring weekly loan installments. However, they note that out of the new 112,200 naira weekly amount, only approximately 39,766 naira goes toward the actual loan repayment, about 33%. The remainder covers several additional fees, such as a weekly maintenance charge of 9,966 naira, a repairs fund of 16,343 naira, insurance costs totaling around 3,390 naira, and a handling fee of 42,735 naira, which has raised questions given the handling expense exceeds the loan portion.
Additionally, the protesting drivers urge that Uber, the platform facilitating their work, caps its commission at no more than 20% to ease their financial burdens.
The drivers have committed to a peaceful demonstration and have warned that any violent behavior by participants will lead to immediate removal and handing over to authorities. Services on the UberGo platform will remain suspended until Moove reverts the payment hike.
About a year ago, concerns circulated among Uber Go drivers when reports emerged of Moove’s plan to raise the weekly repayment amounts. Initially, vehicles were provided under a hire-purchase agreement with a four-year repayment plan set at 56,400 naira weekly, exclusive of Uber’s 25% fare commission.
Drivers were reportedly invited in groups to be briefed on the decision, with company representatives explaining rising operating expenses as the rationale for the increase. One driver confirmed that during the meeting, management detailed their rising costs, which justified increasing the weekly remittance.
However, insiders suggest that Moove is reassessing its business model in light of Nigeria’s challenging economic climate. Inflation has eroded the value of the agreed interest rates within the repayment schedule, jeopardizing the company’s profitability.
