Business
Drivers cry foul over 25% commission Yango is getting
Yango drivers have cried foul over low
Picture: Zambian Business Times
Yango drivers have cried foul over low fares, revealing that the amounts displayed to customers are not adequate to cover operating costs as well as earnings.
The drivers say the situation is worsened by commissions deducted from each trip, which is between 20-25 percent per fare.
Speaking in an exclusive interview with Zambian Business Times-ZBT Emmanuel Chiti, Assistant Chairman of the Online Taxi Association of Zambia (OTAZ), said the pricing structure is creating tension between drivers and passengers because drivers sometimes receive significantly less than the fare paid by customers. Instead, Chiti suggested for an alternative subscription model.
“Let me just give an example, the trip is for maybe K120 and they end up getting about 25 percent from that trip. The customer knows they are paying K120, but as a driver you are getting about K90 or K80,” Chiti said.
This is worsened when the drivers have to cover long distances, covering fuel and other expenses. Chiti urged Yango to consider reducing its commission if it wants to maintain affordable fares for passengers.
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“If they want cheap things for customers, let them reduce commission from every trip,” Chiti said.
Meanwhile, Emmanuel Phiri, a member of OTAZ and a Yango driver for more than four years, said drivers also face challenges because trip requests do not always show the passenger’s destination before the driver accepts the order.
Phiri said drivers may have to travel several kilometres to pick up a passenger without knowing where the passenger is ultimately going, making it difficult to determine whether the trip is economically worthwhile.
He said drivers can also lose priority points when they decline certain orders, which he argued puts additional pressure on drivers to accept trips without knowing the destination.
Phiri further raised concerns over the different deductions faced by drivers, including platform commissions and VAT, saying these costs reduce their earnings.
The concerns come amid complaints from some passengers who say drivers sometimes refuse fares displayed on the application, particularly on trips from the airport, and demand additional payment.
However, the drivers argue that the fare displayed to passengers does not necessarily represent what they eventually take home after deductions.
The drivers said they have repeatedly raised their concerns with Yango and are calling for engagement over the platform’s pricing and commission structure.
Article by Karen Ngulube
Source: Zambian Business Times — Read more
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