Lagos ride-hailing drivers’ earnings drop as fuel costs jump 60%

Ride-hailing drivers in Lagos have reported a decline in real earnings following an over 60% increase in fuel prices over the past six weeks as operating costs surged without corresponding adjustments in fares or platform commission structures.

Fuel prices rose from about N800 per litre on February 28 to between N1,300 and N1,330 in Lagos by mid-April, significantly raising daily running costs for drivers operating on platforms such as Uber, Bolt and InDrive.

Many drivers said the increase has wiped out profit margins or reduced trips to near break-even levels, with some noting that previous earnings levels can no longer be sustained under current fuel conditions.

Despite the cost pressures, drivers said platform pricing models and commission rates, which typically stand at about 25% on Uber and Bolt and 12% to 15% on InDrive, have remained largely unchanged, deepening pressure on earnings across the sector.

A 57-year-old driver, Olabode, said earnings on Bolt have fallen sharply since fuel prices rose from around N800 per litre. He said a N20,000 fuel spend, which previously generated about N50,000 to N60,000, now delivers much lower returns and often leaves only minimal profit.

He added that even when total earnings rise to about N30,000 to N35,000 on that fuel spend, it is now considered a good outcome under current conditions.

A part-time driver, Ahmed Taofeek, who operates mainly on InDrive, said the rise in fuel prices has made the business significantly less viable, as fares have not adjusted in line with costs.

He said a N20,000 fuel spend now barely yields meaningful returns, compared to about N45,000 previously.

He added that the imbalance between fares and operating costs has made the system increasingly unsustainable, calling for fare adjustments to restore balance.

However, another driver, Olotu Michael, said his experience shows that the impact of higher fuel costs depends on platform use and operating decisions.

He said he has, in recent weeks, stopped relying on Bolt and InDrive, focusing instead on Uber as his main platform due to changes in his earnings pattern under current fuel prices.

Michael said that based on his current operating approach on Uber, he can spend about N50,000 on fuel and generate up to N150,000 in daily revenue, depending on timing, demand and trip flow.

He added that earnings on Uber depend largely on the driver’s approach and how effectively they manage trips and demand periods.

Drivers said the sharp rise in fuel prices has forced them to adjust how they work, with earnings now depending more on strategy, timing and cost control than trip volume.

Olotu Michael said he has refined his approach on Uber by focusing on selective trip acceptance and service quality to improve ratings and access better-paying rides.

Michael said customer experience directly affects earnings, as higher ratings increase access to better-paying trips. He said he often asks riders at the end of trips to give a five-star rating if they enjoyed the ride experience with him, noting that most passengers comply when satisfied.

He added that he structures his work around peak demand periods, splitting shifts between daytime and late-night hours, especially on weekends, to maximise returns.

Olabode said he has adjusted his driving habits to reduce fuel consumption, including limiting the use of air conditioning and relying more on open windows during trips.

He added that changes in platform enforcement on Bolt have given drivers more flexibility, as acceptance rate requirements that previously stood at around 70% are now less strictly enforced, allowing drivers to reject more trips without losing access to rides.

Olabode said this flexibility helps reduce exposure to unprofitable trips, although it does not fully offset the impact of higher fuel costs.

Lagos residents who regularly use ride-hailing services said rising fuel costs have also influenced their expectations around pricing, comfort and safety.

For Toyin Gboyega, price and proximity remain the most important factors when booking a ride. She said comfort features such as air conditioning depend on the nature of the trip, adding that she is less concerned about it for short journeys.

Another rider, Nseobong Inyang, said air conditioning remains a key factor in his decision and often determines whether he completes a trip. He said he confirms with drivers before pickup and cancels rides if expectations are not met.

He added that comfort standards in ride-hailing, once taken for granted, have become less consistent in recent weeks alongside higher fuel costs.

For Ben Osadolor, affordability outweighs comfort due to frequent commuting across Lagos, where ride-hailing is a regular transport option.

Across the three accounts, riders said security remains a non-negotiable factor, with cancellations common if they feel uncomfortable with a driver’s profile or behaviour before pickup.

In March 2026, ride-hailing drivers under the Amalgamated Union of App-Based Transporters of Nigeria (AUATON) in Lagos embarked on a three-day strike over what they described as unsustainable earnings and worsening working conditions across platforms, including Uber, Bolt, InDrive and Lagride.

The union said the action followed prolonged grievances over declining real income amid rising fuel costs, inflation, and static fare structures that have eroded drivers’ profit margins.

AUATON presented a 10-point demand to ride-hailing companies and government stakeholders. Central to the demands is an immediate upward review of fares to reflect current fuel prices, vehicle maintenance costs and broader inflationary pressures.

The union also called for a reduction in platform commission rates, proposing a range closer to 10%–12%, alongside the introduction of a regulated minimum base fare to prevent low-value trips that undermine driver earnings.

Meanwhile, Uber has previously said it remains open to engagement with drivers through structured dialogue.

Insiders across platforms attributed delays in broader policy changes to headquarters-level decision-making, with key operational and policy choices made outside Nigeria at Uber’s global headquarters in San Francisco, United States, and Bolt’s headquarters in Tallinn, Estonia.

Nigeria’s gig economy is estimated at about $5.17 billion, with ride-hailing platforms playing a key role in expanding access to flexible income opportunities across the country, according to a report commissioned by Bolt and conducted by Ipsos.

The gig economy refers to income-generating work outside traditional long-term employment structures. In Nigeria, ride-hailing platforms are required to maintain a minimum active driver base of at least 100,000 to sustain operations at scale.