Uber & Bolt
To establish a presence in Nigeria’s fintech market, PayZeep, a one-year-old startup, has teamed up with the Amalgamated Union of App-based Transporters of Nigeria (AUATON) to offer ride-hailing drivers a new payment solution.
Frustrated by commission fees and fraudulent transfers from passengers, Uber and Bolt drivers are increasingly seeking more autonomy. PayZeep’s solution allows them to receive payments directly from passengers using handheld point-of-sale (PoS) devices.
“By partnering with drivers, we aim to capture a segment of the payment market,” said Tobi Molagun, PayZeep‘s Head of Sales and Business Development. “While major mobility companies rejected our integration, we saw an opportunity in collaborating with the drivers’ union.” PayZeep provides merchant, agency banking, and payment terminal services in Nigeria.
Read Also: CBN Approves Forex Sales to BDCs at N1,590/$
This initiative comes as ride-hailing drivers face mounting challenges, including rising fuel prices, high maintenance costs, and commission fees paid to platforms, which have squeezed their earnings. Many have turned to offline trips to supplement their income.
PayZeep’s solution enables drivers to bypass the payment systems of Uber, Bolt, InDrive, and LagRide, granting them greater control over their earnings. However, the startup has set conditions: drivers must complete a minimum of ten rides per day during a one-month pilot program and pay a fee for the PoS devices.
While some drivers are concerned about the daily ride target, PayZeep believes it’s essential for the program’s success. The company also plans to offer drivers a commission on transactions processed through the PoS devices.
