Francis Ukoh, an independent car hire operator at Murtala Muhammed Airport Terminal 2 (MMA2), faces a recurring challenge: passengers often show him lower rates from e-hailing platforms like Uber and Bolt, especially during off-peak hours when these platforms offer discounted fares.
Ukoh, who operates outside the airport complex to avoid the N700 hourly parking fee within MMA2, is frequently caught in a difficult position.
“I know that some passengers will come to me and show me what Uber or Bolt is charging them, especially during off-peak hours,” Ukoh explained.
“It puts me in a tough spot because I know my rates are usually more affordable than the car hire operators inside the airport, but they still want to pay even less.”
Several other independent car hire operators confirmed similar experiences to Naijaonpoint.
However, the increasing popularity of e-hailing platforms, especially with their dynamic pricing models, has made it challenging for independent operators like Ukoh to maintain their competitive edge. Yet, during peak periods when e-hailing rates surge due to high demand, passengers often find the rates of these independent car hire services operating outside MMA2 to be a welcome relief.
The car hire landscape at Lagos airports is evolving, with traditional operators and e-hailing services each vying for a piece of the market. For passengers, the choice between these services often depends on their preferences for cost, convenience, and the reliability of the service.
Mrs. Onoroide, a regular air traveler in her 60s, values the reliability of traditional car hire services.
“At my age, I can’t walk around the airport with all my bags,” she said.
“I’m not used to e-hailing,” she admits.
“I prefer a service that I have repeatedly used over time.”
Opting for an independent car hire operator, she negotiates a fare of N10,000 to Ajao Estate—half the price of the e-hailing fare.
For her, the flexibility and affordability of the independent service were more appealing, especially when compared to the higher rates from e-hailing services during peak periods.
This contrast highlights the different paths passengers take based on their circumstances and preferences. While repeat customers like Mrs. Onoroide may prioritize reliability and familiarity, newcomers or those on a budget may find independent operators more accommodating.
The rise of e-hailing platforms has disrupted the car hire ecosystem, especially for independent operators like Ukoh. He explained how e-hailing services can offer lower rates during off-peak hours, making it difficult for traditional operators to compete.
“I don’t have the luxury like the e-hail operators who can just pick up another order right after dropping off a passenger,” Ukoh explained.
“I don’t have the luxury like the e-hail operators who can just pick up another order right after dropping off a passenger,” Ukoh explained.
“Sometimes, I just have to let go, meaning I refuse to take such customers offering low prices. However, there are instances where I’m able to convince them to go further by explaining how our business models differ. For us, the cost of returning empty has to be factored in, unlike e-hailing drivers who can quickly find another passenger.”
“I charge slightly higher than platform rates during these offline deals to bypass commission fees and still cover my expenses,” the driver explained.
“When I have to accept platform rates, it feels like I’m getting less for my time and effort. But at least I know I’m securing a ride and can make up for it on the next trip,” he added.
“The parking charges are too high, so I rarely operate within the airport,” he said.
Instead, Ahmed focuses on high-demand areas like the Island.
“When I take passengers to the airport, some let me know when they’ll return so I can pick them up,” he noted.
“Many of my colleagues focus on the airport and are willing to pay the fees, but I prefer to work in areas where I avoid those charges.”
The car hire system at Lagos airports offers passengers a variety of options, shaped by the presence of multiple unions, independent operators, and the growing influence of e-hailing services.
“While unionized drivers may charge N50,000 for a ride from Ikeja to Victoria Island, I offer the same trip for about N25,000,” Ukoh shared.
Despite competition from e-hailing services, independent operators thrive by offering flexibility and catering to a diverse clientele. From NYSC corps members to corporate executives, Ukoh’s customers value the affordability and adaptability of his services, particularly during peak hours when e-hailing fares surge.