On Duty During the Festivities: The Holiday Grind of Addis Ababa's Ride-Hailing Drivers

It has been a year and a half since Yonas Tigabu, who holds bachelor’s degrees in construction technology & management and accounting, began working as a driver in the ride-hailing sector in Addis Ababa.

The 27-year-old drives his Suzuki Dzire and works seven days a week, earning around 2,000 birr per day. Even on holidays, he’s on the clock.

“I work on holidays. I was working on Christmas and plan to work on Easter too,” he said.

While holidays are traditionally a time for Ethiopians to gather with loved ones, some ride-hailing drivers like Yonas spend them working. Although there are professions such as healthcare, cafes, and butcheries where employees are routinely expected to work on holidays, ride-hailing is different because it falls within the gig economy.

Jobs in the gig economy are typically short-term, contract-based, or freelance, rather than permanent full-time employment. While ride-hailing platforms allow drivers the flexibility to choose their working hours, a combination of factors often compels many to work during holidays. For Yonas, the primary motivator is the potential for higher income.

“Demand is high during holidays. A lot of people travel to visit family, and many public transport options like minibus taxis don’t operate during those times. That limits people’s choices,” he explained.

Holidays are also considered special occasions, and families often travel together, including with children, which makes ride-hailing a more comfortable and preferred option. Yonas says he can earn over 3,000 birr on holidays. Even working just half a day can bring in around 2,000 birr.

“It’s not just the holiday itself. The days around it, like the eves, also see increased demand. There’s a lot of movement, especially during Easter. People return from church during the night or go to gatherings like Kircha. If they don’t own a car, ride-hailing is their only option,” he said.

For gig workers like Yonas, holidays don’t just bring additional expenses, they also present an opportunity to make up for them.

“Employees have increased expenses during holidays, but they’re guaranteed their next salary. If I don’t work on a holiday, not only do I face extra costs, but I also lose income because I didn’t work,” he told Shega.

Yonas expects to earn around 10,000 birr over a couple of days during Easter, which he says will help offset the added holiday expenses.

“Your family always expects you to contribute during the holiday. I’ll use the extra income to chip in,” he added.

The ride-hailing sector, the pioneering gig economy job in Ethiopia, has come a long way since it was first introduced in the country nine years ago.

Today, around 135,000 drivers work on these platforms. While many startups have attempted to break into the market, early players like Feres and RIDE still maintain dominant market shares. However, new entrants such as Little and Yango are also managing to carve out a portion of the market for themselves.

Many drivers operate on more than one platform, and the sector was once seen as a highly attractive opportunity for young people. Over time, though, rising fuel costs and increased taxes have made the profession less appealing.

Last month, fuel prices in Ethiopia rose significantly. Gasoline climbed to 112.67 birr per liter, while diesel and kerosene both reached 107.93 birr per liter.

This increase is part of a series of price adjustments, as the government gradually reduces fuel subsidies and pushes prices closer to market rates, in response to growing economic pressures.

Ethiopia’s fuel demand costs the government an estimated 100 billion birr annually, and subsidies have historically kept fuel prices well below those in neighboring countries. For comparison, petrol prices in Uganda and Kenya are around 177 birr and 176 birr per liter, respectively.

The recent hike marks a shift in government policy toward fiscal sustainability. In March, Prime Minister Abiy Ahmed (PhD) told parliament that a subsidy of 28 to 30 birr per liter had been provided until March, amounting to over 72 billion birr. The new fuel prices reflect a sharp reduction in that level of support.

Platforms like RIDE have regularly raised their fares to help drivers cope with the rising fuel costs. However, these fare increases are now being passed on to customers, making the service more expensive and leading to a drop in demand.In 2020, the average cost per trip was 120 birr. It has now reached 350 birr, according to industry insiders.

Ride hailing service providers report that the total number of drivers on duty during holidays is lower than on regular days. Little Ethiopia, which has around 43,000 registered drivers, sees active drivers fall by about 30 percent during holiday periods.

“This figure does not reflect the true number of drivers on the road; some remain logged into the app while at home,” said Barouk Almaw, country manager at Little Ethiopia.

He added that the company, which recently marked three years since entering Ethiopia, has not identified a consistent pattern in ride‑hailing demand during holidays. “Sometimes demand increases, and at other times it stays the same or even decreases,” he told Shega.

However, he noted that the eves of major holidays consistently bring a spike in activity as people shop and prepare for celebrations, with Little Ethiopia data showing up to a 20 percent increase in trips during those times.

“To encourage and support drivers working on holidays, starting this Easter, we will not be charging any commission on such days. Currently, we also do not charge commission on Sundays,” he added.

Barouk explained that as some drivers choose to take holidays off, those who remain on duty capture the available business, which may explain reports of high demand among drivers working during the holidays. 

He further stated that many ride-hailing drivers earn disposable income and can definitely afford to take time off when they choose.

“Unless influenced by personal financial goals or other factors, drivers are not forced to work on holidays, they are choosing to do so,” the country manager told Shega. 

Drivers like the recently wed Sisay Bekele say every opportunity for increased income needs to be taken advantage of. After paying nearly 10,000 Birr for minor spare parts, a few months back, he fears that costs will surely mount by the end of the year.

“I also have to think about taxes at the end of the year,” Sisay told Shega.

He expects to make at least twice as much as his usual earnings of around 2,000 birr during the holiday buzz. The driver with a decade of experience providing taxi services in Addis has also observed a relatively increased willingness to tip during the holidays. He is particularly looking forward to this Easter as fewer trips have been coming in during the two month long fasting season.

“I hope it compensates even slightly for the decreased income of recent months,” he says

Increased traffic penalties are another recent change cutting into ride-hailing drivers’ incomes. In August, Ethiopia passed a new Road Transport Traffic Control Regulation into law.

Since its adoption, anecdotal reports of hefty penalties have become widespread. The regulation includes 21 categories of offenses, with fines varying based on the frequency and severity of the violation.

New violations introduced under the law include wearing headphones while driving, giving money to beggars, and playing excessively loud music. In addition to these new rules, existing penalties have also seen significant increases. For example, the fine for driving without a seatbelt has risen from 200 birr to 1,500 birr. Some categories of violations now carry penalties as high as 20,000 birr.

“These heavy traffic penalties have seriously affected me. Now I’m always driving with a lot of tension, constantly worried I’ll be fined for even the smallest violations, which sometimes happen arbitrarily—even when you’re in the right,” said Yonas.

Thus, Yonas sees Easter and other holidays as an opportunity to earn more.

“The roads are also open on holidays. It’s definitely a working day for me,” he added.