Drivers operating under Moove’s vehicle financing scheme and Uber’s UberGo platform in Lagos have launched a strike over a steep increase in weekly remittances. They describe the adjustment as an unjust 100 percent hike that threatens their ability to earn a living. Operations on UberGo are being curtailed as drivers down tools and gather at meeting points including Maryland, Lagos.
Background
Moove supplies cars on a hire-purchase model that historically targeted a four-year repayment period for many drivers. For Suzuki S-Presso units, drivers say the weekly remittance started at ₦56,400, excluding the commission Uber deducts from fares. Reports over the past year suggested Moove had been evaluating adjustments as operating costs climbed.
What Changed
Drivers allege the weekly remittance was doubled to ₦112,200 without extending the repayment tenor or adding relief measures. A cost schedule circulating among drivers listed a total weekly outlay of ₦120,200, of which only ₦39,766 was tagged to the actual loan. The remainder comprised line items such as maintenance, a repairs fund, insurance, health coverage, and a ₦42,735 handling fee.
Drivers’ Grievances
Protesting drivers say the structure is insensitive to current earnings realities and, in some cases, applies even to vehicles they did not receive brand-new. They want Moove to reverse the increase and to revisit the fee split so that repayments correlate more clearly with asset ownership. They are also urging Uber to cap its commission at no more than 20 percent to ease pressure on take-home income.
Moove’s Rationale
Moove’s position, according to people briefed on internal discussions, is that inflation and rising operating costs have eroded the viability of earlier pricing. Interest-rate assumptions baked into the original plans have been weakened by macroeconomic shifts, making the prior terms unsustainable. Company representatives have told drivers that the changes are designed to stem losses and reduce exposure during the remaining tenors.
How UberGo Is Affected
With a sizable cohort of Moove-financed drivers stepping back, UberGo ride availability in Lagos is already tightening. Riders could experience longer wait times and higher surge as supply dips below typical weekday levels. Drivers say they will not resume operations until Moove reconsiders the structure or presents a compromise they deem fair.
Economics Behind the Dispute
Nigeria’s persistent inflation, higher parts prices, and currency pressures have lifted maintenance, insurance, and financing costs across the transport sector. For asset-financing platforms, these inputs can outrun fixed remittance schedules unless prices are reset, creating stress on unit economics. For drivers, however, abrupt hikes compress margins and lengthen the practical path to ownership.
What Stakeholders Are Watching
Driver representatives are calling for a transparent, line-by-line justification of non-loan charges and a repayment timeline aligned with current earnings patterns. Observers expect negotiations that could involve revisiting the handling fee, consolidating overlapping maintenance items, or staggering increases over time. Any change to Uber’s commission policy would likely require platform-level approval and broader commercial review.
Possible Paths Forward
One route is a partial rollback paired with an extended tenor that smooths weekly cash outflows while preserving Moove’s capital recovery. Another is a cost-sharing formula in which specific non-essential line items are reduced or deferred during high-inflation periods. A third option is a hybrid, with temporary relief now and performance-based adjustments tied to ride volumes over the coming quarters.
The standoff underscores the fragility of driver financing models when macro conditions shift faster than pricing frameworks. Moove is trying to protect its balance sheet, while drivers are trying to protect their livelihoods and eventual ownership. Until a compromise is reached, Lagos commuters on UberGo should expect intermittent disruptions and a tense operating environment.