Uber Exit: SimpliRide Urges Rethink of Nigeria’s Ride-Hailing Business Model

Nigerian mobility firm SimpliRide has urged stakeholders to reconsider Nigeria's ride-hailing business model in light of Uber's exit from the market after 12 years. The company highlighted mounting pressure on drivers due to escalating fuel, vehicle maintenance, and other operational expenses. SimpliRide's Country Manager, Alero Fregene, posited that the industry's future hinges on the economic viability of its drivers, who bear the brunt of costs, including vehicle acquisition, fuel, maintenance, and insurance.

She emphasized that the industry required business models that reflect these costs. Despite Uber's pioneering role in Nigerian mobility, Fregene stressed that the industry must evolve with changing economic realities. SimpliRide operates on a subscription-based model for drivers, which aims to provide income stability. The company sees an opportunity in Nigeria's unique cost structure, urging local operators to develop tailored business models.

Fregene cautioned that being a Nigerian firm alone would not ensure success in a competitive market. She stressed the importance of balancing driver and rider interests, urging the development of affordable fares without compromising driver earnings. SimpliRide is expanding its Driver Transition Programme to accommodate professional drivers seeking alternative ride-demand sources.

The company also sees potential in Nigeria's corporate mobility market, where businesses and institutions continue to require reliable transportation services. While noting downloads as a metric, Fregene emphasized meaningful indicators like active drivers, rider demand, and completed trips as more accurate measures of success.