Ride-Hailing Companies Introduce Health Insurance Coverage

Twelve ride-hailing companies are set to introduce health insurance for drivers, marking a significant advancement in driver welfare following years of advocacy for improved conditions and benefits. Companies such as Rida, Indrive, Bosscab, SimpliRide, as well as indigenous Nigerian providers like Nairaxi, have committed to offering this insurance, according to a source familiar with the discussions.

“We are still finalizing the technical details,” the source, who requested anonymity due to lack of authorization, stated. “Initially, the coverage will be for drivers only, with potential consideration for family coverage in the future.”

Health insurance is a sensitive issue in the ride-hailing sector, often tied to the debate over whether drivers should be classified as employees or independent contractors. While major companies like Uber, Bolt, and LagRide have not joined the agreement, Bolt currently provides health insurance as a driver incentive based on meeting specific targets. LagRide recently withdrew its health insurance benefits, a decision that drew increased attention following the tragic death of driver Adedayo Padmore in January 2024, prompting renewed calls for driver health coverage.

The insurance plan will encompass routine medical check-ups, surgery, cancer treatments, ante-natal care, and medication.

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“The HMO [Health Maintenance Organization] will become operational within the next 90 days, following awareness campaigns in our state councils. We will commence collecting check-off dues from platforms that sign onto the agreement,” stated Damola Adeniran, president of the App-Based Transporters of Nigeria (AUATON).

The union is also establishing membership processes to identify its members and intends to continue advocating for reduced commission rates from major ride-hailing companies, as well as pension benefits and representation in decision-making processes.

Techrectory with Agency Report.

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