Drivers associated with a ride-hailing service in Botswana are facing reduced earnings due to increased fuel costs and heightened competition following the entry of a new player in the market. Several drivers have expressed concerns over the low base fares and advocate for a fare hike, echoing sentiments shared by gig drivers across Africa who feel the current model is skewed in favor of customers.
Additionally, gig drivers in Botswana are adapting to a recent policy change by the service provider, introducing a 10% commission on earnings. Previously operating with no commission, drivers now believe that with this change, fare adjustments are necessary to maintain profitability.
The ride-hailing service justifies the introduction of commissions as a means to reinvest in the Botswana market for long-term sustainability. Despite this, there have been no formal complaints filed by drivers regarding the new commission structure.
The company emphasizes the importance of monetization for business sustainability, aiming to strike a balance between driver earnings and company growth.
Furthermore, drivers are grappling with the service’s unique pricing model that allows for negotiations between drivers and riders. Some drivers find it challenging to negotiate further if the initial fare offered by a rider is already low.
While some drivers attempt to negotiate higher fares with riders, this practice has been discouraged by the service provider. This approach can lead to varying reactions from customers, from understanding to negative ratings.
In a bid to expand its reach, the ride-hailing service announced plans to launch in Francistown, Botswana’s second-largest city, intensifying competition in the market. The entry of a major competitor sets the stage for a potential market share battle, offering drivers opportunities to navigate the evolving landscape.