CIG Motors, the Chinese automaker behind GAC vehicles in Nigeria, has assumed full operational control of LagRide, the Lagos State-backed ride-hailing platform, LagisReporter revealed.
The news platform revealed further that the company is replacing the existing drive-to-own scheme with a fixed salary structure, where drivers will earn ₦150,000 monthly.
Under the phased-out arrangement, drivers had the opportunity to own their vehicles by making daily payments. However, economic hardships made it increasingly difficult for many to meet these obligations. Rising inflation and financial strain forced some drivers to abandon their vehicles altogether. The transition to a fixed-wage model is intended to provide stability, but many drivers believe it limits their income potential in an already challenging economic climate.
Beyond changes in driver compensation, CIG Motors also plans to introduce electric vehicles (EVs) into the LagRide fleet. However, the timeline for this transition remains unclear. Industry experts warn that Nigeria’s inadequate charging infrastructure and unreliable electricity supply could pose significant challenges to large-scale EV adoption.
The operational shift coincides with the departure of Tumi Adeyemi, founder of Zenolynk Technologies, which co-developed LagRide with the Lagos State government. Zenolynk had initially designed a financing model requiring drivers to make a ₦700,000 down payment and complete daily installments over four years. However, as the economic climate worsened, dropout rates surged, prompting the shift to a salaried model. Adeyemi has since moved on to Qoray, a mobility company focused on electric vehicles, LagisReporter reveals further.
With the new structure, LagRide now operates differently from competitors like Uber and Bolt, which use a commission-based model that allows drivers to control their earnings. While Uber and Bolt drivers often complain about high commission fees, they still enjoy greater income flexibility than LagRide drivers under the fixed-wage model. Some LagRide drivers have expressed dissatisfaction, arguing that ₦150,000 per month is unsustainable given Lagos’ high cost of living.
Credit: LagosReporter
