inDrive Rolls Out In-App Ads in Nigeria as It Chases New Revenue Streams

The ads appear within the app interface, most prominently during post-booking wait times and while passengers are en route. By placing promotions at moments of high user attention, inDrive is tapping into one of its strongest assets: frequent, repeat engagement.

The move reflects a broader challenge facing mobility startups operating in price-sensitive markets like Nigeria. Ride commissions alone are increasingly insufficient to sustain long-term growth, especially as competition intensifies and operating costs rise. In-app advertising, by contrast, offers a high-margin and scalable revenue stream that grows alongside user activity rather than trip pricing.

inDrive’s decision mirrors a wider trend across Nigeria’s gig economy ecosystem. Local mobility and delivery platforms are experimenting with alternative monetisation models that do not rely solely on taking a cut from drivers. Over the past two years, companies such as Chowdeck and Glovo have rolled out advertising products aimed at brands seeking access to large, active user bases.

The introduction of ads also comes at a sensitive moment for drivers. In early 2026, transport unions raised concerns over what they described as double VAT deductions on ride fares following recent tax changes. According to drivers, total deductions per trip increased from about 9.99% to roughly 12.5%, further squeezing earnings in an already difficult operating environment.

This development adds to long-standing tensions between inDrive and its driver community. In late 2025, the company launched a promotional policy in parts of South Africa that allowed drivers to keep up to 99% of their fares, effectively capping inDrive’s commission at 1%. While the move was presented as driver-friendly, many industry observers viewed it as a temporary response to unrest and competitive pressure rather than a sustainable shift in business strategy.

Nigeria has seen similar friction in the past. Ride-hailing drivers have staged strikes and protests over low fares, rising deductions, and safety concerns tied to platform operations, underscoring the fragile balance between platform growth and driver welfare.

Read More: Lagos Goes Electric: LagRide Rolls Out 100 EVs in Ride-Hailing Push

inDrive’s peer-to-peer pricing model, which allows riders and drivers to negotiate fares directly, has been central to its success in Nigeria. The approach resonated strongly in a cost-conscious market and helped the company become one of the most downloaded ride-hailing apps globally.

Now, as inDrive pushes toward a broader super-app vision that includes grocery delivery, advertising, and other services, the challenge is no longer just growth. The company must find a way to layer in new revenue streams without deepening tensions with drivers in one of Africa’s most competitive mobility markets.

That balancing act may ultimately determine whether in-app ads become a quiet win or another flashpoint in Nigeria’s evolving gig-economy landscape.