Taxi Drivers Groan Under Hire-Purchase Scheme

After driving a taxicab acquired under a hire-purchase scheme in 2009 for over three years,  Mr. Lanre Afolabi is not a happy man. Why? The vehicle has  deteriorated. “I had to change the engine recently because it was no longer in good condition,” he said. “I bought another engine for N65,000, and only then was I able to  put the vehicle on the road again.” Like Afolabi, many of the drivers operating under the ‘drive to  own scheme’ of the modern taxi regime in Lagos, have complained bitterly about the scheme. Saying that it favours  the vehicle owners at the expense of the drivers. Apart from struggling to meet the daily and weekly targets set for them by their various management, the drivers said they still had to fuel the cars and maintain them. Some of them explained that no matter how long they have gone in meeting the repayment plan, at any point one defaults, the ownership is reverted to the original owner. They  claimed that before finishing the payment for the cars, which could be between one and four years, some of them would have become worn out, and  may require their engines to be changed.

Afolabi, who is one of the taxi drivers/owners that benefitted under the auspices of the Lagos State Taxi Drivers and Cab Operators Association, with a loan facility made possible by the state government through the Lagos State Micro-Finance Institution, and other financial institutions, said he had paid up for the Nissan Sunny  taxi cab that he collected under the scheme.He said, “I have finished paying for the car. I paid N25,000 weekly for three years. “Afolabi, who is also the chairman, Pen Cinema Unit of the association, said it was not easy for him to meet that target.One of his colleagues in that unit, who preferred anonymity, also has a tale of woes to tell about the scheme.

He told our correspondent he had also paid up for his Nissan Sunny Yellow Taxi, but the car is currently parked in his residence.  “The engine is completely worn and I need money to buy another engine before I can put it on the road. The scheme is not worth all the trouble.  When I calculated everything I have paid on that car, including insurance, it is about N4.6m,” he moaned.Sharing Afolabi’s tale of woes are those drivers operating under the Red Cab and Metro Taxi schemes. Those in this category make higher returns to the owners on weekly basis. And they complained that it was an Herculean task meeting the target.A driver under the Red Cab scheme, who pleaded anonymity, for fear of being punished, said he made   a weekly payment of N35,000 to the management on the Suzuki SX 4 car that he had received under the ‘drive to own’ scheme.

The driver, who parked the car at the Bar Beach Bus Stop, waiting for customers, said, “The thing no dey easy. You can see, I am just relaxing, there is no passenger yet. And at the end of the week, I have to deliver N35,000 in the office. I will do that for one year.”  By the time he would have completed this cycle for one year on this fairly old car, he would have paid N1.8m. Another driver, who gave his name as Olu, said he had entered the Red Cab scheme before he realised what was involved. He complained that some of the cars were old, and he had to change some parts in the car.James Arebha who, until two months ago, was a driver under the scheme operated by the management of Metro Taxi, said he opted out after one year and a few months.According to him, he paid back N42,000 weekly, which he had kept to faithfully until he defaulted in the sum of N20,000 in a particular week. The car, he explained, was tracked at the Bar Beach where he had hoped to pick passengers.

He said, “I had to quit that scheme and left the car about two months ago. Simply because I was owing just N20,000 in one week, the car was tracked where I had parked hoping to pick passengers. I had to go and give the key to them and I  had to forgo the car despite the fact that I had remitted about N2m or more.”Arebha, who now has another cab, though unpainted, said he felt as if he was under a kind of ‘bondage’ trying to meet such a target. “It was hectic meeting that target. I couldn’t sleep, I was always on the road, working. I had my brush and toothpaste in the car then. But that one is off my neck. I now work at my own pace,” he added.Some of his colleagues, who are still under the scheme,  also agreed that it has not been easy with them meeting the target, because they had to contend with yellow and other unpainted cabs, which, most times, charge lesser fares.

“Na struggle dey this job. We go compete against the taxi drivers and all these kabukabu wey full town. Dem no dey charge as we dey charge,” one of them said in
Pidgin English.

The group head, Brands and Communications, Philly and Mools Group, the parent company of Metro Taxi, Mr. Rotimi Wusu, said the company operates ownership scheme, in which drivers involved must pay N42,000 weekly for three years without fail, after which the cars become theirs. He, however, added that if any of them fails due to one reason or the other, the company would invite such a person and he would be told what was expected of him by his supervisor.He said, “We understand that there are low moments in business, that is why we encourage them to develop the attitude of saving. These savings will come handy whenever they experience any shortfall in their weekly remittance on the car.“Before the ownership is transferred to any of the ‘pilots’ he must have fulfilled all obligations, most especially, his account with us must be balanced. We have had occasions where some of the drivers would just abandon the cars and leave.”At the Red Cabs office  on Oduduwa Way, Ikeja, a male official, who spoke to our correspondent under the condition of anonymity, said the agreement between the company and the drivers was purely business, in which the investor “must recoup his investment with a premium.”He said under the scheme, some drivers will be completing their one-year repayment plan by October, and others  have theirs extended till next year.

“It all depends on the type of scheme each one of them signed at the entry point. Some are paying N35,000 weekly for one year, some others are paying for one-and-half years. For some others, it can be for three years or more if the cars are new,” he stated.The secretary, Lagos State Taxi Drivers and Cab Operators Association, Mr. Taye Omolekan, explained that it was true that some of the members who got cars on this hire purchase scheme have fully paid up, while some others are still paying for theirs.On the issue of depreciation, Omolekan said any car used for transportation for three years must suffer wear and tear.He added, “I also got a car under the scheme. Any car being used for transportation must suffer wear and tear. On the weekly repayment plan, I think it started with N25,000 weekly, later it was N20,000 and at present, there are some that are paying N15,000 weekly.”Although six companies were awarded licences in 2008 by the Lagos State Government to roll out these modern cabs, four major ones spearheaded this novel idea.  They are the Orange Cabs, Red cab, Metro Taxi and Corporate Cabs. Other corporate cabs have since joined  the scheme.

Source: http://www.punchng.com