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Nigeria and India's New Playbook on Uber

Typically, on ride-hailing fares, in Nigeria and most other places, Uber drivers get 75% of the fare while the remaining 25% goes to Uber. But India has a new law: “Ride-hailing firms such as Ola and Uber can only draw a fee of up to 20% on ride fares in India, New Delhi said in guidelines on Friday”.

Ujjwal Chaudhry, an associate partner at Bangalore-based marketing research consulting firm Redseer, said the guidelines by the government will have a mixed impact.

“While it is positive in terms of formalizing the sector as well as increasing the consumer trust on aggregators through improved safety regulations. But, overall the impact of these guidelines on the ecosystem growth are negative as capping surge and platform fee will ultimately lead to reduced earnings for 5 Lac (500,000) drivers (currently on these platforms) and will also lead to increased prices and higher wait times for the 6-8 crore (60 to 80 million) consumers who use it for their mobility and commute needs,” he said in a statement.

Personally, I do not like it when governments begin to dictate prices on non-monopolistic products and services; I mean there are many options to move from one place to another with traditional taxis still available. Yet, India might have seen some data to make this call: What do you think of this India’s playbook and its potential application in Nigeria?

It's both crass and retrogressive. When we kill off entrepreneurship and entrepreneurs, there wouldn't be employees or workers to fight for, everyone will run dry.

Markets can fix these things, because if it's so cool at twenty percent for ride-hailing companies, then a new company can launch with that, and drivers will port. What is untenable is to tell companies how much they must make, some times a single legal challenge runs in millions of dollars, who bears it? Certainly not the drivers.

This sort of decisions is a product of emotions, it's neither logical nor reasonable.