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Ever ordered a cab and the first thing the driver asked was, "Imeleta ngapi?"
With the rise of ride-hailing apps, traditional taxis have largely been replaced by digital platforms that connect drivers to passengers online.
Drivers earn from each trip but must surrender a commission to the app, while passengers can pay either in cash or via digital options like cards or mobile money.
To attract riders and market their apps, these platforms often use discounts and promotions that lower fares. But this has sparked constant debate, who actually bears the cost of these discounts?
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Drivers frequently complain that the cuts are too steep, while passengers insist it’s simply not their problem.
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How discounts in digital-hailing apps actually work
1. The platform pays the discount
This is the case most of the time; promotions are paid by the ride-hailing company or a sponsor, the rider pays the discounted amount, but the driver is credited as if the full fare had been paid.
In other words, the app tops up the difference so drivers don’t lose money on the trip.
This is a marketing cost for the platform, discounted rides attract users and drivers should see the full fare reflected in their weekly statements even when riders used promos
2. Third-party or corporate sponsorship
Some discounts are sponsored by third-party businesses, event organisers, companies, etc, who pay the platform to provide discounted rides to their customers.
In these cases, the sponsor, not the driver, covers the promo cost, but the sponsor, not the app, funds the discount.
Why drivers still complain
Even though the discounts are absorbed by the platform or a sponsor, drivers still raise frustrations and with valid reasons
An AI-generated image of a ride hailling driver
1. Delayed reimbursements
When discounts are covered by the platform, the reimbursement does not always reflect instantly. In some cases, drivers only see the adjustment in their weekly statements or after some hours.
For drivers who rely on daily cash flow to fuel their cars, this delay can feel like a direct loss, even though the money eventually comes through.
2. Confusing statements
The way discounts and promotions appear on trip receipts is not always clear. Some drivers report that their dashboards show only the rider’s discounted payment without highlighting the platform’s top-up.
This makes them believe they are losing money, even when the reimbursement is pending.
3. Frequent promotions
Promotions are designed to attract riders, but when discounts are too frequent, drivers worry that the real base fares are being undermined.
They feel that their work is being valued less, especially when trips are short and discounts significant, now this is topped up by what many drivers say are exploitative commissions.