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US Federal Government Awards Ride-hailing Contracts to Uber and Lyft

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The US federal government has awarded Uber and Lyft contracts worth up to $810 million to offer ride services to public agencies and transport more than four million of their employees and contractors.

Uber said the development is a dream come true as partnering with the federal government has always been the plan for its Uber for Business that serves companies and organizations.

“The expansion of our customer base to include government is a natural next step for us, and we’re proud to help federal agencies tackle some of the biggest administrative challenges they face,” Ronnie Gurion, global head of Uber for Business, said in a statement.

The new contract allows the ride-hailing companies to formally launch their services within agencies and directly work with government officials to promote their services.

Reuters reported a statement from Veronica Juarez, Lyfts’s vice president of social enterprise and government, saying that General Services Administration (GSA), which manages services for federal agencies, issued its final five-year award on Monday.

Juarez said the award capped a nearly four year negotiation process. She did not say how much revenue Lyft expected from the contract, but said the US government spends around $200 million on ground transportation each year.

Lyft hopes the government contract will open doors to further collaboration on public health and equity projects that require transportation.

Neither the GSA nor Uber and Lyft gave details of the contract. But when it was announced back in April, the agency said that it had negotiated discounts with the companies of 2%-4% compared with large commercial customers and that Uber and Lyft had agreed to waive some additional fees.

However, it is a big reprieve for the duo struggling to break through the strains of the pandemic that have narrowed their business to food delivery.

Uber and Lyft have been trying to stay afloat as the pandemic-induced lockdowns confined riders at home amidst multiple lawsuits, and they thus recorded significant losses.

Uber reported gross bookings of $14.7 billion in the Q3, recording a decline of 10% compared to the same quarter last year. The bookings generated $3.1 billion revenue for the company, 18% decline compared to the same period a year ago. The company lost $1.1 billion in its Q3 report.

After the companies won the prop.22 early in November, that ensured that gig business in California could keep their employees as independent contractors, Uber introduced new features to woo more customers.

The feature enables riders to reserve rides up to 30 days in advance and pick their favorite driver for the trip. It is under a new option, called Uber Reserve. Uber said it is designed for riders who want to book rides from two hours in advance.

Part of the Reserve feature is showing the fare upfront and being matched to a driver ahead of the trip. There is also a “favorite driver” option designed to allow riders select drivers they prefer.

Also, they can now add favorite drivers to their app, and once they select the Reserve features, riders will have the choice to select one of their “favorite drivers.” Uber said the favorite drivers will be presented to riders first when they request a ride, and the drivers will not be penalized if they declined the request.

Uber also introduced an additional 15-minute grace period if the rider is running late and an on-time guarantee that will give users $50 in Uber Cash if their driver is even a minute late to the ride they have scheduled.

The GSA approval of the government partnership means guaranteed business for Uber and Lyft, unlike when their business would depend on the commuting choices of customers.

In a Subtle Concession, Trump Approves Formal Transition Process for Biden

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The Trump administration has approved the start of the process for the formal transition of power to president-elect Joe Biden. The administrator of General Services Administration (GSA), Emily Murphy, sent a letter to Biden on Monday afternoon, informing him that the administration is ready to begin the formal transition.

In the letter obtained by CNN, Murphy said the delay in the formal transition process has been as a result of legal actions following the result of the election.

“As the administrator of the U.S. General Services Administration, I have the ability under the under the presidential Transition Act 1963, as amended, to make certain post-election resources and services available to assist in the event of a presidential transition.

“I take this role seriously and because of recent developments involving legal challenges and certifications of election results, am transmitting this letter today to make those resources available to you,” she said.

The letter has put an end to the Trump administration’s denial of the election result, giving Biden access to the fund he needs to prepare for his journey to the White House.

This development means the GSA will make $6,300,000 available to Biden to execute the transition, and additional $1,000,000 to provide appointee orientation sessions and a transition directory.

Following Trump’s inability to acknowledge Biden as the winner two weeks after the presidential election, which thus resulted in GSA’s withholding of the transition fund, Biden began raising funds alternatively. Last week, Biden’s transition team sent a grassroots fundraising plea to its supporters asking for donations to reach more than the targeted $10 million for transition.

The GSA’s letter also means the Biden team will now have access to federal agencies and vital information that the Trump administration has been withholding. Biden had decried the delay, saying it would hinder the fight against coronavirus that is currently ravaging the United States.

Yohannes Abraham, executive director of Biden’s transition said the start of the transition was a needed step in tackling many of the problems facing America, especially COVID-19.

“This final decision is a definitive administrative action to formally begin the transition process with federal agencies,” she said. “In the days ahead, transition officials will begin meeting with federal officials to discuss the pandemic response, have a full accounting of our national security interests and gain complete understanding of the Trump administration’s efforts to hollow out government agencies.”

Murphy had been under intense pressure from Biden and democrats to sign off on Biden/Harris victory, but had allowed the matter to drag on for weeks, suggesting allegiance to Trump based on his conspiracy theories.

But in her letter, she said her decision to delay the ascertainment of Biden’ victory has been independent.

“Please know that I came to my decision independently, based on the law and available facts. I was never directly or indirectly pressured by any Executive Branch official – including those who work at the White House or GSA – with regard to the substance or timing of my decision. To be clear, I did not receive any direction to delay my determination,” she said.

Trump is yet to make a clear concession, though he thanked Murphy in a tweet for her work, after the letter became public, which affirms he approves the decision of the GSA. However, he said the fight to reclaim his stolen election will continue, and implied that he approves of the GSA’s ascertainment because he doesn’t want Murphy to continue to be harassed.

“I want to thank Emily Murphy at GSA for her steadfast dedication and loyalty to our Country. She has been harassed, threatened, and abused – and I do not want to see this happen to her, her family, or employees of GSA,” he said. “Our case STRONGLY continues, we will keep up the good fight, and I believe we will prevail.”

While restating his determination to pursue legal proceedings against what he has described as “rigged election”, Trump said the GSA must do what has to be done in the interest of the country.

“Nevertheless, in the best interest of our Country, I am recommending that Emily and her team do what needs to be done with regard to initial protocols, and have told my team to do same,” he tweeted.

Trump’s determination to continue the push to overturn the result of the presidential election has been described by his advisers as “a veiled attempt to justify continued fundraising solicitations.” Trump campaign has raised millions of dollars for lawsuits, but has lost more than 95% of all the lawsuits it filed pertaining to the election result.

Getting Fortified at 40: A Conversation with Salmah Adetutu Lawal

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I had a different schedule this Wednesday Morning. Having woken up from sleep earlier by 2am that day and having had to work on an academic project whose personal deadline I had given to myself was becoming elusive, I made up my mind I was going to work on that project for some hours of the day plus some other pending writing assignments. Alas, a browse through my Facebook page and the encounter with a mutual friend and her offer of a free gift of her book “Fortified” made me do a detour of my intended schedule. I visited her website, took advantage of the offer and took a glance at the book hoping I would read it some day when I have the time. This has been a major fate of many books on my increasingly expanding list of to read books packed on my system. I have never had time to read books for leisure. It is either I read when preparing a research article or had a quick read when preparing for classes. But a major glance at Fortified made me stay glued until I finish reading at a single sitting! So, what exactly made me stuck to this 136-page and 12-chapter autobiography of this 40-something year-old woman – Salmah Adetutu Lawal? Please, come along.

First, let me confess that many of the experiences shared within the book resonate with me. Perhaps, this is because we grew up in the same era and time. So, I understand the background against which she was coming from. Two, the book is detailed. She wanted to tell it all – the story of her life- albeit from her own perspectives as she clocked 40. And she did justice to that covering issues that could describe her experience within that number of years she has spent alive- her Mum, early years, Dad, personality, work experience, marriage and even her journey into entrepreneurship.  Who would not want to read an auto-biography written by his age mate? Besides, I have had a cause to know the author from a distance. We are friends on Facebook. That was how I delved into the book devouring it at a single sitting as I intended to know her deeper.

So, what is my impression of the book? The book is a good one. The story is simple to read and follow. The author should get kudos for the well-arranged episodes of her life. It makes following the story a piece of cake. The book is equally well spiced with quotations that illustrate her points. This shows the writer is a reader and she is deep philosophically. She also did not hide anything about herself- her strength, weaknesses and vulnerabilities. This is reflected in the way she narrated her ordeal while her failed marriage lasts. She opens this chapter of her life with a direct attack on the beginning of her matrimonial life which eventually fails. With the beginning of her marriage very shaky it would have been a miracle if it had lasted more than it did. Inherent lessons are there for young men and women who are about starting their marital journeys. First, compatibility is not only in terms of blood genotype. Compatibility of a couple in character, passion, drive, and set goals are very critical to the survival of any marital union. The author keeps referring to the fact that being a virgin till a marriage is consummated does not guarantee a lasting relationship in marriage.

Yes, she is right to an extent. She, according to her, remains sexually chaste before her marriage. Yet, the marriage caves in after three children. This is an indication that it is not only sexual chastity that keeps a marriage. After the first night, what keeps the marital union going are mutual respect, mutual understanding, mutual love, empathy and compassion. Just as a woman offering her body to secure a marriage contract would not work, it is the same way that using one’s virginity as a bait to make a marriage lasts will not do the magic. Every intending couple needs to understand that once the signs, before the union is made officially binding, are not good, the marriage may not last. This, I assume, might be the reason for the failure of the author’s marriage. The narration is one-sided. No one may get a complete picture of what transpires between her and her ex-husband.

Away from the author’s marital life, there are other life lessons to pick from her four decades of living. One good point to start with is her career at the Nigerian Television Authority which spans for 16 years! As a part of her generation, I would say she is lucky to have gained admission and graduated at the time she does. Her early entry into the career at the Nigerian national broadcaster gives a leverage. As much as her early entry, her sense of duty, commitment, hard work and goal getting character sustains her not only at the NTA but also when she tries to venture into private practice. A very striking feature of the author is her ability to transit as an English Education graduate to a well-known broadcaster. She uses her knowledge of Islam combined with her experience over the years in the media to make a product for herself upon which she excels. This implies that it does not sometimes matter what discipline you graduate with in the university, you will excel if you are able to combine that with talent and some creativity.

It would do no one any good if the lessons from Salmah’s journey into entrepreneurship are not captured. I assume she wants people to learn from her business sense. In the book, the author dedicates a chapter to talking about what works and what does not work for her. She likes exploring and experimenting with ideas. From an English educator to a broadcaster and then to an Islamic lifestyle entrepreneur, Salmah creates a space for herself and she claims it. Hers is a story of a life built on continuous improvement.

Life, they say, begins at forty. But, for the author, it is the end of an exciting phase and the beginning of another exhilarating path through life. In the concluding chapter, the author does some reflections and projections. She explains what is responsible for her still being unmarried despite advances from men. She wants to be more sure in her choice before she settles down again. I think that is instructive. Nobody wants to repeat the same mistake twice. She wants to explore deeper in her multifaceted career journey as a broadcaster, educationist and a teacher. She hopes for more from life. If the saying that a fool at forty is a fool forever is to go by, then Salmah definitely does not want to appear as one considering her life’s journey over the past four decades. It is a book that is worth reading as it contains lessons of life that are worth learning from.

Tax Law and Global Tax Treaties at Tekedia Institute

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He holds a PhD in Energy Law from the prestigious University of Ibadan. He earned LLM from the amazing University of Lagos. But it all began in the land of lions and lionesses, the enviable University of Nigeria Nsukka, where he graduated in Law.

Today, he is a partner in one of the nation’s top law firms, Hermon Legal Practitioners, where he leads the firm’s tax law and energy tax business, among others. Dr. Jerome Okoro PhD, a Tekedia Institute Faculty, will teach Tax Law during the next edition of Tekedia Mini-MBA.

Taxation is a big area in our Institute. We already have a manager in the Federal Inland Revenue Service (FIRS) developing a course on Global Tax Treaties. Essentially, I want our members to get comfortable with tax and use the available tax laws to advance their missions. 

To join the next edition of Tekedia Mini-MBA, click here.

Key Warnings Ignored by Nigerian Government Before Slumping into Second Recession in 5 Years

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In 2019, our analyst noted that Nigeria would be one of the African countries that would experience economic recession in 2020. Officially, the economy plunges into recession as the GDP in real terms declined by -3.62% YoY in Q3 2020, the second contraction in 2020. This is no longer news. What will continue to be the news or probably the issue in the future is a lack of strong proactiveness of the political leaders towards economic recession warning signals.

Before the emergence of Covid-19, which overwhelmed world economy, national and international economists and think tanks have warned the federal government of the possible economic recession. The World Bank projected that the country’s GDP will contract by more than 3% in 2020. This is not different from what the International Monetary Fund forecasted. According to the body, the GDP will contract by 4.3% this year, which would be the largest contraction in nearly 40 years.

In one of its presentations, the World Bank had earlier pointed out that the Nigerian government must address some critical issues in its macro and micro economic instruments due to the Covid-19 disruption. According to the presentation, the government needs to;

  1. Unify exchange rates into a single window, and increase exchange rate flexibility now, before foreign exchange reserves are further depleted and pressures mount for a much larger and disruptive devaluation that would hurt the poor.
  2. Ease foreign exchange restrictions to limit inflationary pressures and increase supply of food and key staples (e.g., health-related products).
  3. Refocus management of monetary policy toward the primary objective of price stability
  4. Phase-out land border closures to limit inflation and direct private sector development to more competitive ends.
  5. Continue making management of public debt more transparent.
  6. Review prudential requirements related to bank sales of non-performing loans to AMCON and similar companies to transparently streamline the process for efficient resolution of nonperforming loans.

Our check shows that the Central Bank of Nigeria introduced some measures during the disruption. Commercial banks and leading businesses in other sectors also contributed to the reduction of the impacts of the disease on the economy. In spite of this, the country slumps into recession. Our analyst had earlier noted the future of some sectors and industries, especially the real estate industry is at stake.