In a recent turn of events, Uber has started kicking out most Nigerian drivers who have complained about the company’s unfair working arrangement.
The challenge drivers in Nigeria are facing with the ride-hailing service is a result of the financed vehicles Uber in partnership with a vehicle-finance firm, Moove, gave to these drivers. According to the agreement, drivers are expected to pay back the car loan in daily instalments.
However, some drivers have complained to Uber about their inability to earn enough and pay back their loans regularly. In response to the drivers’ complaints, Uber has instead impounded their cars for nonpayment of loans.
The situation that has given rise to Uber drivers’ inability to meet up with payments started with the fuel scarcity in Lagos in February. Speaking to a publication, one of the drivers stated that after Moove issued a warning over the phone in March, shortly afterwards, the firm took away the car from him.
Some of the drivers, in the bid to meet up with their payment, borrow money from lending apps like Fairmoney.
The partnership between Uber and Moove is aimed at providing cars to drivers without any down payment. Drivers are expected to make payments for the vehicle daily, out of their Uber income. Most drivers have complained that they did not make enough to be able to pay back the loan.
Talking to a publication, one of the drivers said: “You can get the car, but you will work through your nose and most likely will not be able to see the end of the payment before you are frustrated.”
Reaching out to the publication, Rest of World, Moove told the publication that they understand the unprecedented economic situation in Nigeria. However, the vehicle-financing firm reminded the publication that they operate a business, and sometimes this means they are required to make tough decisions.
Moove, a vehicle-financing firm (founded in 2020) backed by investors like British International Financial Corporation’s venture capital arm, clearly stated that any vehicle that’s impounded is due to drivers’ inability to meet the new KPIs of Moove. The company also noted that the daily instalments for some of the drivers have been reduced.
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