Online Drivers In Ghana Will Start Paying $11 Yearly To Renew License To Drive — Lessons For The Gig Economy

From Uber to Bolt to Yango, drivers in Ghana who rely on ride-hailing to sustain their livelihood would start paying a mandatory GHC 60 ($11) annual fees for ride-hailing platforms in the country, in addition to their cars undergoing roadworthy tests every six months. Ghana’s Driver and Vehicle Licensing Authority (DVLA), which imposed the GH¢60 ($11) annual fee noted that the guidelines will cover the current ride-hailing platforms like Uber, Bolt, and Yango and will also cover companies who intend to operate ride-hailing platforms in Ghana in the future.

Here Is All You Need To Know

  • The fee is being imposed as part of new guidelines introduced by the Ministry of Transport, National Road Safety Commission, and the MTTD of Ghana Police Service.
  • In addition to the annual fee, owners of vehicles who use ride-hailing platforms will have to obtain a registration certificate at the Digital Transport Center at DVLA’s Headquarters in Cantonments for “verification and authentication.”
  • The DVLA also stated that ride-hailing cars must undergo roadworthy examinations and certifications every six months, making it twice a year roadworthy renewal.

“Having successfully signed up, the vehicle must now undergo roadworthy examination and certification every six (6) months as it is the case for all commercial vehicles,” DVLA noted in the statement.

Beyond the guidelines for the car owners, the DVLA said drivers of the vehicles must mandatorily be present for their verification and authentication.

Unlike in the case of the vehicle owner, the driver must be physically present for this activity…..Drivers must ensure that, at all times, they possess a valid Driver’s Licence,” it added.

Online Taxes May Be A Turn Off For The Gig Economy

Indeed, Ghana is showing example of what may happen to the gig economy should government decide to regulate or over-regulate it. As at 2016, Ghana had a record number of over 3000 drivers using the Uber ride-hailing platform alone. This figure did not take into consideration the number of drivers registered with Bolt and Yango. And as expected, it is not clear from the new regulations whether a driver who is registered across different ride-sharing platforms may be required to make the yearly renewal remittance of $11 on each of the platforms. 

Uber Revenue and Usage Statistics — Source: BuildFire

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Obviously, this development is sending a message to the proliferation of technology-enabled ride-hailing services who rely on independent workforce to execute their business models. The message is however simple: if the government decides to over-regulate the sector any day, the sustainability of the model may be put to question. And indeed, Ghana is also sending a message to other jurisdictions that collecting levies from city mini-bus drivers by using physical agents could easily be replicated online simply by widening the government’s tax net. 

“It is another money making tool by government, twice a year roadworthy renewal at the expense of drivers who are already suffering. Accidents by Uber and Taxify cars are extremely low and so the road worthiness of these cars is not in question,” said Promise Torgbo Wise, Public Relations Officer for the Online Private Drivers Association of Ghana.

The drivers argued that the already 25% charge by Uber and Taxify, is exorbitant and therefore wants the new regulation scrapped to enable them survive the hardships in the country.

“We do not like the taxes DVLA has placed on our job. The App we use for our online service takes 25 percent for every trip. We also pay GH¢ 60.00 for authentication and verification of our vehicles every month. And DVLA wants to add this also, how do we survive this?” They said in a recent interview.

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world