The Ashanti Region Online Drivers Union (ARODU) has announced a fare increase for ride-hailing services, effective August 5, following a breakdown in negotiations with app companies over sales commissions and vehicle maintenance costs.
The decision comes amidst a surge in fuel prices, adding to the financial pressures on drivers.
Isaac Baffour Boateng, chairman of the union, defended the fare hike during the 2024 MTN MoMo Month launch in Kumasi on August 7. Boateng explained that the increase is necessary to alleviate drivers’ financial strain and enhance service quality.
“We have had several engagements with the app companies but received unsatisfactory responses,” Boateng said. “These companies are taking 25% of our sales, which impacts drivers’ earnings.
We have decided to forgo any bonuses on trips costing GHC20 or more to address this. If a trip costs less than GHC20, drivers will still charge GHC20 to cover costs.”
Boateng emphasized that drivers are instructed to inform passengers about the fare adjustments beforehand to avoid conflicts.
The fare increase has elicited strong reactions from frequent ride-hailing users, who express frustration over the additional financial burden.
Customers using services like Uber and Bolt are concerned that the fare hike will impact their budgets.
“Why do we pay more during a surge and face issues when fares are adjusted to benefit us?” questioned one customer.
“This doesn’t seem fair. They should address these issues directly with the app companies instead of affecting us.”
Another customer noted issues with drivers going offline due to fare disputes and refusing to accept discounts, highlighting the need for a solution accommodating drivers and passengers.
The fare increase underscores ongoing tensions between drivers, app companies, and customers, reflecting broader challenges in the ride-hailing industry.
