Lagos Govt reverses 10% service charge for trips on e-hailing platforms

The Lagos State government, on Friday, reversed the plan to impose 10 per cent service charge on every trip made through e-hailing platforms like Uber and Bolt.
The Commissioner for Transport, Dr Frederic Oladeinde, made this known to newsmen, after a three-hour meeting of Governor Babajide Sanwo-Olu, some executive council members and e-hailing operators at Lagos House, Marina.
Oladeinde said that the state government had reached an agreement with operators to now charge N20 per trip instead of 10 per cent of the charges for each trip.
He said that the N20 per trip charge, which would take effect from August 27, 2020 would be known as Road Improvement Fund.
The commissioner said that other agreements reached include 20 per cent reduction in the operating and renewal license fees.
He added that drivers had been urged to complete their documentation within the next 90 days.
Oladeinde said that the documents that the drivers should acquire include the Lagos State Registration Agency card and drivers licence.
According to him, drivers who fail to comply will be banned from operating, among other penalties.
He said that a one-stop shop had been created to ensure that drivers process all the required documents easily.
Oladeinde said that it was also agreed that the operators should take comprehensive insurance for each vehicle, while the driver took a third party insurance.
He also said that the operators had been charged to do a background check on each driver, which the state government hoped would promote safety.
The commissioner said that the operators were also mandated to provide data about each trip made on their platforms every week.
According to him, the data would help government to plan better on areas it should deploy resources.
Also speaking, the Commissioner for Information and strategy, Mr Gbenga Omotoso, said there was no strain in the relationship between the state government and the operators.
Omotoso said that steps taken by the state government were aimed at providing a good environment for businesses to thrive, aside promoting safety and security of residents and commuters.
He said the regulation was not about imposing taxes but safety.
The President of Professional E-hailing Drivers and Private Owners Association, Idris Shonuga, implored e-hailing drivers to comply with the state government directives.
Shonuga lauded the state government for helping to resolve all the grey areas.