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Barriers to E-Hailing Union Ownership of App Companies

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by Giorgi Kostiuk

a year ago


Legal Constraints The Nigerian e-hailing union, AUATON, is statutorily prohibited from owning e-hailing app companies, as confirmed by Comrade Ibrahim Ayoade. The union's regulatory role precludes direct ownership of app companies under legal frameworks.

Driver Advocacy E-hailing drivers have expressed a desire to have ownership stakes in the apps they operate, leading to discussions within the union about potentially launching an app of their own.

Constitutional Prohibitions The union's constitution explicitly bars its leadership from owning app companies, aligning with the regulatory stance that unions are not intended to function as industry participants.

Industry Dynamics Joseph Olawale highlighted the dominance of cab-hailing companies in structuring industry terms, prompting considerations within the union to establish a counter-app.

Global Comparisons Examples from countries like the US, where driver-owned apps have emerged, showcase alternative models that prioritize driver benefits and earnings distribution.

Empowering Drivers While union ownership of e-hailing apps is restricted, individual drivers can leverage cooperative models to enhance control over earnings and operational practices.

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