Ride-hailing firms eye Uber’s market share after exit

Indigenous ride-hailing firms in Nigeria are eyeing a larger slice of the mobility market following Uber's departure, according to Alero Fregene, Country Head of SimpliRide Nigeria. She believes the move could reshape competition in the industry rather than dampen demand for app-based transportation. Fregene stated that local operators now have an opportunity to compete more fiercely on pricing, driver earnings, reliability, safety, and customer experience.

She emphasized that the ride-hailing landscape should increasingly revolve around the economic realities of drivers, riders, and businesses that depend on dependable transportation daily. Uber's exit is expected to prompt a redistribution of drivers and passengers among existing operators, providing indigenous technology companies a chance to strengthen their market presence.

The development arrives amid growing concerns about the financial viability of ride-hailing in Nigeria, where drivers grapple with high fuel costs, vehicle acquisition expenses, expensive financing, maintenance bills, and insurance premiums. Fregene explained that the changing market allows drivers to compare platforms based on the actual returns they generate instead of remaining reliant on a single operator.

SimpliRide operates a subscription-based system, contrasting with the commission model prevalent in the ride-hailing business. Under this arrangement, drivers pay a platform subscription fee and retain 100% of their base trip fares. Fregene added that the structure offers predictable platform costs and enables professional drivers to retain a larger portion of their earnings.

The company's transition program for professional drivers comprises accelerated onboarding and verification, platform orientation, and access to the subscription model. Drivers are not mandated to cease using competing ride-hailing applications, allowing them to operate across multiple platforms and determine which offers the best economic returns.

While subscription models enable drivers to keep their trip fares, their longevity hinges significantly on operators' ability to generate ample ride requests to keep drivers active. Fregene highlighted that SimpliRide has amassed over 23,000 app downloads and cultivated a growing community of drivers and riders. The company has begun monetizing the platform through subscriptions.

Fregene cautioned, however, that indigenous operators must prove their competitiveness rather than relying on their Nigerian ownership to attract drivers and passengers. She emphasized that SimpliRide is not asking Nigerians to support the company simply because it is Nigerian but rather to evaluate the economics, experience the technology, and decide if the model suits their needs.

Beyond individual passengers, the struggle for market share is anticipated to expand to corporate transportation, with mobility firms targeting businesses, hotels, and institutions seeking technology-enabled transport services. SimpliRide is pursuing this segment through a business transition program covering employee transportation, executive mobility, hotel transportation, airport transfers, and other institutional transport requirements.