Weeks after Lagos state government placed a permanent ban on commercial motorcycles and tricycles across the state, it has now declared plans to commence a new era of increased revenue collection from ride-hailing and taxi companies.
Lagos Government sets to begin the collection of increased charges from ride-hailing and taxi companies in the state
All indications show that ride-hailing companies operating within Lagos may start paying a mandatory ₦10million or ₦25million License Fee to the state government following newly proposed regulation. This new rule will affect popular companies like Bolt (Taxify), Uber and others once their drivers (partners) exceed 1,000 in number. It will also require the companies to be paying a ₦5million or ₦10million recurrent yearly renewal fee.
Now, for those companies that have their own employed drivers and specially branded vehicles, the new regulation requires them to pay ₦5million if only their drivers don’t exceed 50 in number else it will be ₦10million.
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Still, on the matter of LASG and ride-hailing companies, reliable sources claim that the new regulation also states that the Lagos government will begin a collection of 10% charge on each trip made by these companies within the state. This means that for every ₦1,000 paid by UBER or Bolt customers, ₦100 goes to the pocket of Lagos state government.
This new 10% tax per trip seems to be a clever way the government wants to use for taking its own share of the ride-hailing business that is now booming in Lagos. However, all these charges will only put more weight on drivers using these platforms because the companies already take 20-30% per trip from drivers. There is every possibility that once the government begins implementing these policies, current fares might get bumped up to cover for it.
According to this new rule, drivers of ride-hailing companies like Bolt and UBER will also be required to possess a LASDRI card as well as approved drivers badge in order to operate within Lagos. See a sample of the card in the picture below;
Sample of LASDRI card which drivers of ride-hailing companies in Lagos will soon be required to have
This new regulation is coming into effect starting from the 1st of March, 2020.