Ride-hailing giant, Uber has been accused by the Lagos State Government of Nigeria of defaulting on a data-sharing agreement that was initiated in 2020.
According to the state government, Uber is required to share real-time access to user trips and location data through backend API integration. The data needed by the government is for planning purposes, generating revenue for the state, and enhancing adequate security measures are employed.
While other competitors like Bolt have agreed to the terms, Uber remains hesitant due to the company’s privacy policy.
However, just two weeks ago, the Lagos government escalated the situation by demanding immediate access to real-time trip details. They also issued threats of sanctions against ride-hailing companies that do not comply with these demands.
Emphasizing the decision of the government, Oluwaseun Osiyemi, the Lagos State Honourable Commissioner of Transportation, stated that
“Immediate corrective action is imperative to rectify Uber’s non-compliance with the Data Sharing Agreement and API integration of the state.”
The concerns of Uber about granting real-time access have been underscored due to fears of opening Pandora’s box of privacy issues.
This demand by the government could potentially subject users to unwarranted surveillance, raising significant legal and ethical concerns. It also puts the company at risk of facing lawsuits and regulatory challenges related to data protection and privacy rights.
The tension between the Lagos state government and Uber heightened this week as Oluwaseun Osiyemi, the Lagos State Commissioner for Transportation, publicly criticized Uber for its ongoing resistance.
He emphasized the crucial importance of real-time data sharing, which is made possible through Application Programming Interface (API) integration, in ensuring effective transportation services.
Osiyemi also emphasized the urgent need for Uber to address its non-compliance quickly and cautioned of potential “severe sanctions” should the company fail to adhere to the data-sharing agreement and execute the API integration as required.
He went further to alert Uber users about the possible repercussions of these sanctions, which could greatly affect their access to the service within Lagos state, Nigeria.
Uber, though silent on the matter also insisted in the early days that it has fulfilled all regulatory obligations to the state, including an annual licence fee of seventeen thousand, seven hundred and nineteen dollars ($17,719), a per-trip road improvement levy of $0.014, and data-sharing requirements.
However, the data sharing policy is peculiar to only Lagos state in Nigeria.
FinTech Telex recalls that in 2016, the ride-hailing company revealed sharing data on over eleven million users and six hundred thousand drivers across the state with global regulators.
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What Does The Request Of Lagos State Government Mean To Citizens And Uber?
As the Lagos government stands firm and Uber maintains its reservations, the current situation remains unbalanced. The days ahead will be pivotal in determining whether Uber will yield to the pressure and comply with the request to share real-time data, or if it will opt to contest the government’s demands.
This decision carries significant implications, including potential effects on user privacy, adherence to safety regulations, and the trajectory of the ride-hailing industry in Lagos, a metropolis with a population exceeding twenty million people.
The former Lagos Transport Commissioner, Frederic Oladeinde, reportedly mentioned that ride-hailing regulations were reviewed in 2020 and companies are meant to conform to them.
In his words,
“We are not asking the e-hailing companies to release detailed data. All we are asking from them is data for trip movement so that we can calculate the right charge and levy due to the government. This data is to be supplied every week.”
The ride-hailing giant is yet to comply with multiple reminders sent by the Lagos government, leading to the decision to detain Uber app users.
However, Uber asserts that it is actively collaborating with the government to devise a lasting solution for API integration.
