Ride Increases Prices, Adds TOT

Joining the wave of entities adjusting their rates, Ride has announced an increase in its flag-down and duration fees. Part of a new pricing strategy to be rolled out over the next nine months, the first round of changes will take place this month.

“Based on our survey, we recognized the need to structure our Baseline account without pushing away our customers or overburdening them financially,” Ride stated through its official Telegram account it uses to communicate with drivers.

In this initial phase to be implemented on Monday, October 7, 2024, the flag-down fee will rise from 100 birr to 130 birr, while the per-minute duration fee will increase from 2.50 birr to 3 birr. “Following this, we will implement smaller monthly increases over the next eight months,” the statement added.

Related- Here Are the New Ethio Telecom Prices

In addition to the price adjustments, Ride has also informed its drivers that Turnover Tax (TOT) will soon be introduced.

The newly approved introduced value-added tax (VAT) proclamation mandates that drivers operating vehicles with fewer than eight seats (excluding Bajajs) must collect either VAT or TOT. Drivers with an annual income above 2 million birr will need to charge 15% VAT, while those earning below 2 million birr must collect a 10% TOT.

"Starting October 10, a TOT increase will apply across all Ride services. As per the new tax law, the tax will be added to customer fares, with drivers responsible for collecting and transferring it to the tax office," stated Ride.

Last week, the Commercial Bank of Ethiopia (CBE) also implemented VAT on various financial services to comply with the government's updated tax regulations.

Additionally, several state-owned enterprises are raising tariffs as they adapt to Ethiopia's new economic realities, with the latest being Ethio Telecom. However, the private sector has generally avoided making such public pricing announcements.