Lagos state government set to propose guidelines for ride hailing companies

The Lagos State Government has set guidelines for E-ride hailing companies to be implemented on August 20. The provision means that the state government will collect taxes, licencing fees and then a percentage from every trip completed on these platforms. Uber and Bolt will pass this 10% cost along to end users, making cab fares more expensive.

Regulations for e-hailing companies in Lagos have come a long way. At the beginning of regulatory engagement with the government, the initial plan was for the drivers on these platforms to pay a licence fee on each vehicle.

A source privy to the regulation discussions said that Uber, Bolt and other operators were invited to the ministry of transportation last week Wednesday. But that the meeting was postponed without notice to Thursday, and Uber and Bolt were not present at the new meeting.

The meeting, chaired by the Special Assistant to the Governor on transportation was to discuss licencing, data collection and a service charge: the same issues which had come up in previous meetings with stakeholders.

In the end, those present at the meeting said that the SA read out from the draft document of the new regulations. Despite protests about many aspects of the guidelines, the ministry of transportation says it will begin implementation on August 20.

Toriola Hafeez, the head of the vehicle inspection office in Lagos further explained the state government’s stance on the issue. “The regulation has been approved by the governor. We have called the operators and other intending companies to cooperate with the new guidelines which are in line with global best practices,” Hafeez said.

He added: “We created these guidelines with the operators. What we have done is to look at developed countries and how they maintain their infrastructure and we’re applying that here.”

On August 20, the guidelines for e-hailing companies in Lagos will come into effect. Uber and Bolt will pass this 10% cost along to end users, making cab fares more expensive and the new regulations are fraught with privacy issues.

The last few years have provided answers; for every industry where technology is making rent-collection difficult, as every industry is hit with regulations that tend to make things a tad bit difficult for those affected.