If you’ll recall, Uber claimed it had facilitated over a million trips in Lagos after its first 16 months; that is 30% more rides in Lagos than it did over the same period in London. Pretty impressive! But that impressive feat could soon be a thing of the past, especially in Lagos, following a recent regulation by the Lagos State government.
They (LSG) want to regulate taxi operations using a franchise system. What this means is that taxi operators must register with the Lagos state government so it can create a database of owners of such vehicles and issue a franchise license. This shouldn’t be a problem, right?
However, the franchise license involves a threshold of 50 vehicles at N100,000 per car! That is 5M for 50 cars!
Now that is a big problem for taxi services like Uber and Afrocab who rely on private vehicles to operate.
According to the Special Adviser to the Governor on Transportation, Prince Anofiu Olarewaju Elegushi:
“The state’s commitment to regulate the mile to mile taxi system with a view to ensuring safety and security of passengers.”
Although Uber claims it is actively working with the Lagos government to fix this, there is no doubt that this would disrupt the operations of Uber & other ride-sharing platforms in Lagos