The Lagos State Government, after a meeting with representatives of e-hailing taxi services, says it has amicably resolved issues around regulations that affect their operations in the state.
In a move to ensure the safety of Lagosians who use ride-hailing services like Uber and Bolt, the Lagos State Government had rolled out guidelines for online hailing business operation of taxi in the state. These regulations, which were initially set to be enforced from August 20, 2020, will now take effect from August 27, 2020.
Under the new regulations, third-party operators with over 1,000 drivers on their platforms are expected to pay ₦25 million licencing fee and ₦10 million annual renewal fee.
As stated by the Lagos State Government, “… there is an urgent need to upgrade the existing guidelines for the operation of Taxi Business in Lagos State based on the reality of insecurity and safety confronting the sector as people of questionable characters have hijacked the process which has resulted into increased road crashes, kidnapping, robbery, pollution and insecurity, thereby eroding the confidence of the general public in Taxi business.”
Certain aspects of the new guidelines had sparked some criticisms and conversations from operators, drivers, and users. However, according to the Lagos State Government, concerns around the regulations have been amicably resolved with the representatives of e-hailing taxi services.
In a Twitter post, the State Governor, Babajide Sanwo-Olu said, “After meeting with representatives of e-hailing taxi services, we amicably resolved issues around regulations that affect their operations in the state. Effective from August 27, the new regulations will come in to effect.”
After meeting with representatives of e-hailing taxi services, we amicably resolved issues around regulations that affect their operations in the state. Effective from August 27, the new regulations will come in to effect. pic.twitter.com/5ks2yzcWaW— Babajide Sanwo-Olu (@jidesanwoolu) August 14, 2020
“The e-hailing companies will ensure vehicles carry comprehensive insurance that covers the riders. We redefined service tax which was initially put as 10% as Road Improvement Fund. We have come to a resolution that the levy will become a flat fee of N20 per trip. We also came to a resolution that there will be a reduction in the operational licence by 20%. Likewise, the renewal fee has been reduced by 20 per cent. Similarly, all drivers on e-hailing platforms have 90 days to perfect all documents and licences required for operation.” Sanwo-Olu added.
According to him, “It is important to state that as a government we have a duty to ensure businesses operate in a manner where rules and regulations are not flouted. We want businesses to thrive and we will continue to work with stakeholders in every sector to ensure a good relationship.”
The new policy comes months after motorcycle hailing services were banned from operations in Lagos State.