*To Begin implementation of new Guidelines For Online Hailing Business Operation of Taxi in Lagos State on August 27
*Reverses 10% service charge
*Gives drivers 90 days to regularise documents
The Lagos State Government (LASG) has slashed the license fees to be paid by e-hailing firms including Uber and Bolt to operate in the state by 20%.
The LASG also replaced the 10% service charge on all trips made via e-hailing firms in the state with ₦20 (per trip) contribution to what it calls Road Improvement Fund.
The implementation of the new guidelines for the operation of e-hailing startups in Lagos is expected to now commence on August 27. It was earlier scheduled to begin on August 20.
These reversals, changes and extensions were as a result of a meeting held recently at Lagos State House Marina between some members of the LASG including Governor Babajide Sanwoolu and ride-hailing operators.
Under the new regulation, operators like Uber and Bolt that have over 1000 drivers on their platforms will now pay ₦20 million licencing fee instead of ₦25 million and ₦8 million annual renewal fee instead of ₦10 million.
After meeting with representatives of e-hailing taxi services, we amicably resolved issues around regulations that affect their operations in the state. Effective from August 27, the new regulations will come in to effect. pic.twitter.com/5ks2yzcWaW
— Babajide Sanwo-Olu (@jidesanwoolu) August 14, 2020
Those that have less than 1000 drivers will now pay a licensing fee of ₦8 million instead of ₦10 million and an annual renewal fee of ₦4 million instead of ₦5 million.
Operators who directly own their cars and employ their drivers will pay only the license fee of ₦4 million-if such operators have below 50 drivers-instead of ₦5 million. Those who have over 50 drivers will pay ₦8 million for the operating license instead of ₦10 million.
Addressing the media after the meeting, the Commissioner for Transport, Dr Frederic Oladeinde said: “The regulations for the e-hailing companies will take effect from August 27, 2020. We have given an additional one-week extension for all operators to comply.
“Given that most of the drivers on the e-hailing platforms have third party insurance, the companies will have comprehensive insurance for each driver while the driver is working with them. The insurance will also cover passengers, which amounts to double insurance for the driver.
“We also discussed the issue of service tax, which was initially defined as 10 per cent charge. We have come to resolution that the levy will become a flat fee of N20 per trip.
“We no longer call it service tax; we now call it Road Improvement Fund, which will be levied per trip. We also came to resolution that there will be reduction in operational licence by 20 per cent. Likewise, the renewal fee has been reduced by 20 per cent, going forward.”
Oladehinde emphasised that the State Government had granted all drivers on the e-hailing platforms an extension of 90 days to perfect all documents and licences, required for operation, including driver’s licence and Lagos State Residents Registration Agency cards.
He added that the Government would create a special office for the drivers to fast track necessary registration and documentation before the deadline.
On the issue of data, Oladehinde said, “We are not asking the e-hailing companies to release detailed data. All we are asking from them data for trip movement, so that we can calculate the right charge and levy due to the Government. This data is to be supplied every week.”
Drivers/Ride-hailing Operators React
The National President of Professional E-hailing Drivers and Private Owners Association (PEDPA), Idris Sonuga while thanking the LASG for the guidelines review, he urged drivers to comply with the regulations and the deadlines given by the Government.
Speaking on behalf of the ride-hailing firms, Chief Executive Officer of BMP Car, Mr Ezekiel Ojo, stated that all the operators were in agreement with the outcome of the meeting.
