A CRITICAL EVALUATION OF THE BOLT RIDE-HAILING SYSTEM AND DRIVER ASSOCIATIONS IN IBADAN

CHAPTER ONE INTRODUCTION 1.1 Background of the Study The emergence of ride-hailing platforms has brought significant changes to urban transportation systems around the world, including in Nigerian cities. One such service, Bolt, has notably reshaped the urban transport scene in Ibadan—Nigeria's third-largest city and a major metropolitan area in West Africa. Bolt has gained considerable popularity among commuters and drivers alike, largely due to its intuitive mobile application and efficient service delivery. As Bolt and other ride-hailing platforms continue to grow, so too has the prominence of driver associations, which play a vital role in advocating for drivers' welfare within the industry. These associations are often involved in lobbying for drivers' rights, facilitating negotiations with relevant stakeholders, and fostering unity and support among their members. Urban transportation in Nigerian cities has undergone notable transformations from the early 1900s to 2020. Traditionally, public transport was dominated by commercial buses (commonly known as danfo) and yellow taxis, many of which were in poor condition. Before ride-hailing platforms came into the picture, finding a cab meant hailing one on the street or walking to the nearest taxi park. As Johnson, Dunn, and Sack (2020) observed, public transport was largely inaccessible and inconvenient. The rise of e-hailing services, particularly Bolt, has dramatically improved the mobility of people and goods in Nigeria’s urban areas (Oseni, 2021). These services cover various transport modes—cars, tricycles, and motorcycles—with operators managing distinct fleets. Fundamentally, Bolt’s platform is designed to simplify connections between individual drivers and passengers. Driven by Nigeria’s growing urban population and evolving transport needs, Bolt has seen rapid growth, expanding from just two service providers in 2014 to 26 by 2019. Many of these operators focus their services on major urban centers. According to Dickenson (2018), the digital ride-hailing sector in Nigeria was projected to generate approximately USD 292 million in revenue by 2020. This growth represents about 15% of Africa’s e-hailing user base, estimated at 48.6 million adults. Since Bolt’s entry into Nigeria in 2014, ride-hailing platforms have significantly enhanced commuting convenience. Many drivers in Ibadan now rely heavily on Bolt for their economic survival. Therefore, studying how Bolt’s operations intersect with the goals and actions of driver associations can reveal important insights into the economic and social impact of these platforms on drivers and the transportation sector at large (Dickenson, 2018). Bolt operates within a regulatory landscape that often overlaps with the interests and demands of driver associations. Examining the nature of this interaction can offer valuable perspectives on the regulatory and operational challenges faced by both entities. Such insights can also inform the development of policies aimed at creating a fair and sustainable transportation system. The relationship between Bolt and driver associations also reflects broader labor issues such as working conditions, income security, and employment classification. Understanding the bargaining processes and negotiations between these groups is key to analyzing labor dynamics within Nigeria’s gig economy (Dickenson, 2018). Beyond the economic aspects, transportation systems influence the social and cultural fabric of cities like Ibadan. Interactions between Bolt, driver groups, and other stakeholders reveal deeper patterns related to community identity, social cohesion, and urban development. This study, therefore, seeks to investigate the nature of the relationship between Bolt and driver associations in Ibadan, and to evaluate its implications for drivers, passengers, policymakers, and other stakeholders in the urban transport sector. 1.2 Statement of the Problem Participants in Nigeria's e-hailing industry, particularly those working with Bolt, face growing uncertainty due to unprecedented government regulations in recent years (Georgia & Douglas, 2016). The regulatory environment for e-hailing services in Nigerian cities remains unclear and often problematic. Previous attempts to regulate ride-hailing platforms in urban areas have frequently been met with resistance, leading to conflicts between platform operators and government agencies (Davey, 2015). Moreover, research indicates that some ride-hailing operators have experienced interference from authorities like the National Union of Road Transport Workers (NURTW), who have barred them from making stops at certain transport hubs (Banya, Johnson & Carboni, 2020). These tensions are further aggravated by regulatory inconsistencies between traditional taxis and e-hailing services. Proposed regulations, including compulsory licensing and a 10% tax on ride fares, threaten the long-term viability of e-hailing businesses and the livelihoods of their drivers (Dhawan & Yadav, 2018). Additionally, there have been reports of criminal incidents involving both drivers and passengers, including theft, abduction, and in some cases, fatalities. Other challenges include poor internet connectivity, which often disrupts the booking and completion of e-hailing transactions. Concerns over digital fraud have also led many drivers to abandon mobile banking apps in favor of cash payments. These issues undermine the role of e-hailing platforms in promoting innovation and smart urban development (Sylvans, 2022). Given these challenges, it is important to assess the relationship between Bolt and driver associations in Ibadan. 1.3 Objective of the Study The general aim of this research is to assess the Bolt transportation system and the role of driver associations in Ibadan. Specifically, the study seeks to: i. Examine the socio-economic impact of the Bolt transportation system on drivers in Ibadan. ii. Evaluate the effectiveness of the Bolt transportation system in Ibadan. iii. Identify challenges hindering cooperation between Bolt drivers and driver associations in Ibadan. iv. Recommend strategies for promoting sustainability and stronger collaboration between Bolt and driver associations in Ibadan. 1.4 Research Questions The study will be guided by the following research questions: i. What are the socio-economic impacts of the Bolt transportation system on drivers in Ibadan? ii. How effective is the Bolt transportation system in Ibadan? iii. What challenges affect collaboration between Bolt drivers and driver associations in Ibadan? iv. What strategies can enhance the sustainability and cooperation between Bolt and driver associations in Ibadan? 1.5 Significance of the Study This research will be valuable to several groups: Ministry of Transportation: By shedding light on the interaction between Bolt and its drivers, the study can help assess the efficiency of urban transport in Ibadan. This includes insights on ride availability, wait times, and accessibility—all crucial for effective urban planning. Policymakers: The findings can guide regulators and policymakers in understanding the benefits and challenges of incorporating ride-hailing services into the broader urban mobility landscape. The study also highlights important issues such as taxation, driver welfare, and licensing. Academic Community: The research will add to existing literature on urban mobility, digital labor platforms, and transport economics in Nigeria. 1.6 Scope of the Study The study is focused on evaluating the Bolt transportation system and the role of driver associations in Ibadan. It will examine the socio-economic effects of Bolt on drivers, assess how effective the platform is, identify existing challenges to collaboration, and propose practical strategies for improving mutual cooperation and sustainability in the sector. Geographically, the research is limited to the city of Ibadan. 1.7 Limitations of the Study As with any academic research, this study encountered several constraints: Time: Balancing this research with other academic responsibilities such as lectures and coursework was challenging for the researcher. Financial Constraints: The study incurred various expenses, including those related to printing, data collection, and sourcing materials. Availability of Materials: It was sometimes difficult to access sufficient literature on the specific topic due to its evolving nature. 1.8 Definition of Terms Bolt Transportation System: A ride-hailing service in Ibadan that connects passengers with drivers using a mobile app for on-demand transportation. Driver Association: A collective body or union of drivers within Ibadan that advocates for member welfare, negotiates with companies, and offers support services. Transportation Network Company (TNC): A business that uses digital platforms—mainly mobile apps—to link passengers with transportation providers.