Uber, taxi passengers to pay more as Lagos sets new rules

With the stage set for the implementation of the new guidelines for Uber and other taxi operators in Lagos State by August 20, passengers should brace up to pay more for taxi services.

Passenger fare is expected to go up as ride-hailing services in Lagos, including Uber, Taxify and private taxi drivers, will begin to operate under the new regulatory dispensation.

In January, the state government placed a ban on commercial motorcycles and tricycles in 15 local government areas. The ban exempted other ride-hailing services, such as taxis.

The new guidelines, billed to take effect from next Thursday, also stipulate new licence fees, which differ, depending on the number of vehicles in the fleet of the operator.

A draft document, titled: Guidelines for Online Hailing Business Operation of Taxi in Lagos State, reads: “There is an urgent need to upgrade the existing guidelines for the operation of taxi business in the state, based on the reality of insecurity and safety confronting the sector (transportation) as people of questionable characters have hijacked the process, which has resulted in increased road crashes, kidnapping, robbery, pollution and insecurity, thereby eroding the confidence of the general public in taxi business.”

For operating licence, companies (ride-hailing services) that have less than 1,000 taxis will pay N10 million, while those that have more than 1,000 vehicles will pay N25 million.

Companies with less than 1,000 taxis are expected to pay an annual renewable fee of N5 million, while those with more than 1,000 taxis will pay N10 million.

Also, ride-hailing service providers will pay 10 per cent service tax to the state on each transaction paid by the passengers to the operators.

Among other regulatory fees, ride-hailing service providers are expected to grant the Ministry of Transportation access to their database.

Source