Uber in Ghana: Its effect on existing commercial transport and its impact on Urban Mobility

Introduction

The morning of 14th June 2016 was an exciting experience for me. I got to experience my first Uber ride here in Ghana. I had always read about people using Uber in other countries and their experiences and I wondered when I would ever get the experience since before Uber popped up in Ghana, our “exclusive” car hiring service options were either the Yellow Cab Company Ghana or the Gold Cab Limited, both being luxury cab services. Historically, there have been very limited options when it comes to public transport in Ghana. On the “non-exclusive” options it is either trotro (minivans) or taxis and these are all private entity initiatives, often a coalition of drivers who are governed by union rules.  Over the years, Ghana has experienced a consistent existence of some form of formalized mass transit publicly-owned transport system starting from the independence-era intra-regional Omnibus Services Authority (OSA), and later City Express Services (CES),  the inter-regional State Transport Company (STC), and the dual intra- and inter-regional Metro Mass Limited. Currently, there is the Ayalolo Transport System, intended for the Bus Rapid Transit system but functioning in reality as a Quality Bus Service. In practice, this means that the buses do not enjoy the advantages of quick access around the city as suggested by the name.

There are also the ubiquitous, qualitatively wide-ranging, privately-owned and operationally-unionised public transport operators in Ghana. The unionisation gives these private operators political influence and clout that are periodically exercised for private rewards. The principal unions are the Ghana Private Road Transport Union (GPRTU), the Progressive Transport Owners Association (PROTOA), Ghana Co-operative Transport Association, among others, coming together to form the Ghana Road Transport Coordinating Council. Lately, there have been sporadic splinter groups breaking out, albeit dying out as quickly as they emerge. Incidentally, there is the tendency for such splinter groups to use the name of the mother union preceded by the sobriquet “Concerned”, although the label is only a reflection of personal anxieties and not systemic care.

Lastly, with growing road congestion in the main cities especially, there has been a substantial appeal and growth in the use of motorcycle taxis (known locally as Okada) not just for the catering for passengers but goods as well. A variant of the Okada motorcycles that has emerged very recently is a contraption, referred to as “Motorking” – the name of the Chinese manufacturing company” – or in local parlance as “Aboboyaa”. It comprises the motorcycle or tricycle with either a short trailer wagon to cart goods or waste, or a hood and bed to seat passengers respectively. As its use grows so are the complaints from traditional taxi operators of the invasion of the Aboboyaas. It can not be said to be a good public transport vehicle but its use appears more convenient and cheaper for its patrons.

Riding with caution

There are however pros and cons to using public transport. A trotro usually seats about 16-24 people and has a longer travel time since first of all, the bus has to fill up at the station before it will move, this means that there will definitely be a lot more stops to drop off and pick up passengers.  On the plus side however, it is a much cheaper means of transportation in urban areas when money is considered. Although you must be careful when getting in or out of a trotro since your clothes might get caught on any of the exposed metals and tear. This is not a good experience when you are late for work and have a presentation in the morning. A lot of young people in the corporate world would prefer to avoid this situation and opt for a taxi instead.

There is usually a debate on whether a taxi can be considered as public transport. A study done on the Taxi Industry in Australia concludes that “Taxis are not public transport. They are a mode of private commercial transport that plays two key roles in the transport system: they are a complement to public transport and also an alternative to public transport.” Technically, from the aforementioned same could be said of Trotos in Ghana.

Before Uber

In Ghana, a taxi is also usually shared commute unless you opt to pay for “dropping” which comes at a higher fare. These taxis are usually identified by the yellow paint on their sides. They are usually old vehicles that have been converted to most likely earn some extra income for the owner or provide the driver with some source of primary income, that is, if the driver owns the taxi. “Dropping” is usually the way to go when you are in a hurry since you have the taxi to yourself and the driver will not need to make any stops. This is however an expensive option since the driver determines how much he will charge you for the trip and it is up to you to either bargain the price down or move on to another taxi driver who is willing to accept the fare you are proposing. If you are unfortunate and there is traffic congestion or rain, be ready to pay extra for the driver’s services since this will be a determinant of whether he will take you or not. It is the worst feeling on a sunny day when you have to move from one place to another and have to stand out in the sun to hail a taxi, and then negotiate a favorable fare for both of you.

So, you can now understand my excitement when Uber first launched in Accra, Ghana. I could sit in my room, or office and get a nice, comfortable vehicle to pick me up and send me to my destination. Another exciting aspect was that I never had to worry about having cash on me since you could link your bank card to the application and be charged when the trip ends. Surely, this service is too good to be true, right? I have asked myself this question over the past two years and realized that in as much as I am excited to have this application and service in Accra, and now Kumasi, not everyone feels the same way that I do.

Overview of Uber

First of all, let us explore what this Uber is all about. Uber is a convenient, usually inexpensive and safe taxi service where the customer hires a private driver to pick them up and take them to their destination through an application on their phone. When a request is made, the application locates the nearest driver who picks the customer up in a few minutes. In order to ensure the safety of the customer, the trip can usually be tracked on the phone or shared with a friend. Sounds easy and convenient, right? Well, usually that is the situation, when the driver can follow the GPS to get to your location. I have had a few instances where I have been picked up from the same location by one Uber driver in a few minutes and I have had to direct another one for about 20 minutes. So maybe management may have to do a lot more with regards to training and refresher courses of the drivers on navigation. There have also been instances where there may be a problem with the internet service provider, thus making it difficult for the driver to end the trip to generate a fare for the customer. Some people have been reimbursed for situations like this while others have had their accounts debited since the trip ended up costing more. There has however been an improvement in the service provision since in the beginning, customers could not tell the cost of their trip till it was over but now, once an Uber is requested for, an estimated cost is provided to help you make a decision if you actually want to confirm the trip or cancel. Although there seems to have been a few glitches, it seems like this service is here to stay albeit amidst complaints of other taxi service providers.

Rising Issues

Over the past few months, there have been a number of news reports concerning free floating taxi drivers as well as union drivers about the competing nature of Uber. As mentioned earlier, when hiring a taxi in Accra, you would have to let the driver know your destination and then he gives you a price. It is up to you to either negotiate this fare or accept it in order to start the trip. This is basically how Uber works as well: (base fare + time + distance rate sometimes this formula is multiplied by a surge or toll booth fees where applicable. The difference between these service providers is that, where Uber’s prices may be fixed due to the formula, the taxi driver determines what the base fare is, what the time rate is and what the distance rate is. This, therefore, makes uber usually a cheaper option than a regular taxi.

There have also been complaints of tax payments by the Taxi Drivers. Their concern is that they have to pay taxes to the District Assemblies they are operating within but Uber does not have to make such payments. They are also required to pay for operating licenses but Uber does not have to. Uber however usually pays their corporate tax to the Ghana Revenue Authority and are also taxed indirectly on 25% tax uber takes from their drivers. So come to think of it, Taxi Drivers are better off in this situation than Uber is.

Taxi drivers are also usually required to acquire an operating permit each year from their local authority in order to operate in that locality. Any taxi driver who is apprehended by the task force of the local authority without a permit is likely to pay a fine. This makes it difficult for them to operate in other jurisdictions but it appears Uber does not face the same situation because I could request for an Uber in the LEKMA district and my destination will be Ga East and it would not be a problem for the Uber driver. I have however tried to hire a taxi from the Ayawaso West Sub Metro to the AMA area and the taxi driver has refused to take me because he did not have a sticker (mind you, this was the days before Uber so it was such an inconvenience).

The issue of branding has also come up among taxi drivers complaining about Uber “killing” their business. It is very easy to recognize a taxi cab in Accra because the yellow color painted on the sides of the car will be a dead giveaway.  However, when Uber broke into Accra, it was originally very difficult to identify the vehicles since they are private vehicles. These days though, it’s easier to identify them now since most Ubers are Daewoo Matiz or Kia Picanto cars (this is becoming very annoying as the whole point of choosing Uber over regular taxi is comfort and convenience). One can argue that for security sake, we do need to have a more formal way of identifying these Uber vehicles, which I may agree with because of the few incidences that have occurred with people assuming the vehicle they were getting into was their Uber they ordered and it ended up being a dubious person preying on the business by robbing these passengers. I strongly object to the yellow cab color though since if I wanted to take a taxi, I probably would do that. In most countries like Australia, Canada, Spain, an Uber Driver is required to display a sticker visibly on their car. This is to help passengers, as well as local authorities, identify them. If the Taxi Drivers and Law enforcers are advocating for some kind of identification for the Uber drivers in Ghana, then this could also be adopted. This may not be favorable for the Uber drivers since they could also be easily identified by taxi drivers who would like to harass them or could make them easily approachable by passengers who may not want to book through the App thus saving money.

Moving Forward

Management of Uber may want to take a look at a few complaints from passengers though since lately, the new crop of drivers may be costing the franchise some business. I recently had an experience where I requested for an Uber, I got a driver to confirm, I was picked up (after a very rude phone conversation from the driver might I add), and we started the trip. As soon as the driver started the trip, he realized I was paying by card so he changed his mind and asked me to cancel the trip. This was when we were 2 minutes into the trip so of course I was going to be charged for canceling when it was not my fault. Aside from that, think of the inconvenience of being left in the middle of a trip and trying to find another ride to get you to your destination, that is how I felt. I know I am not the first person this has happened to and it would be really appreciated if Uber could look into it and sensitize drivers on contract terms. Especially now that there is competition from Taxify (we will look into them in another article).

Conclusion

Like it or not, Uber seems to be here to stay in Ghana since they just celebrated 3years of operations here in Accra and are functioning in Kumasi now. Hopefully, they will make their way to other parts of Ghana. I have actually considered signing on as a driver to earn some extra money and maybe I should. This will give us the opportunity to find out first-hand what Uber drivers actually go through and get behind their reasons for the dip in service provided lately. It could be a management issue that could be addressed after they have been identified.

The Government of Ghana actually has an advantage with the growth of Uber in Accra. This is because Uber can be used to improve upon our Google Mapping in order to operate efficiently. The Ministry of Transport, as well as Ministry of Roads and Highways could partner with Uber to periodically receive information on travel patterns and traffic information for effective and efficient Transport Planning to improve productivity in the City. Not to talk of the inherent potential for improving  the Street Naming and Property Addressing which still remains at different stages of completion.

Come to think of it, a Transport Planning Company or any other technical agency could partner with Uber in Accra to develop a second application to inform road users on alternative routes during rush hour and peak hours since they already have access to all the routes and traffic information in the city. This information could go a great length to improve mobility in the city and reduce traffic congestion and travel time (maybe I should look into this myself).

As for the free-floating taxis and the co-operation and unions protesting Uber in the market, I think it would be helpful for the Ministry of Transport to meet with them, find out their concerns and be as open with them as possible concerning the requirements Uber has to meet in order to operate in this country. Maybe if they knew, they would not be so quick to protest but delight in how easy they have it to maintain their operations. I understand that they may be competing with the Uber drivers for passengers but I know for a fact that not everyone is enthusiastic to board an Uber and so they will definitely never run out of business. They should see it as a competition in their monopolized market and take it as an opportunity to improve their service delivery to be able to stay competitive.

The next post will look at the latest protests and conflicts Uber Drivers have had with Management concerning administrative issues concerning their 25% deduction, fuel charges, among others.

• Credit I: https://www.modernghana.com/newsphoto/1/1/ODcwNDcz

• Credit II: https://commons.wikimedia.org/wiki/File:Madina_ghana_taxi_rank3.jpg