CIG Motors Takes Over LagRide Operations, Introduces Salaried Model for Drivers

CIG Motors, the Chinese automobile company behind GAC vehicles in Nigeria, has assumed full operational management of LagRide, the Lagos State-backed ride-hailing platform. 

Per TechCabal, multiple drivers familiar with the situation revealed that CIG Motors will discontinue the existing drive-to-own arrangement, replacing it with a fixed salary structure. 

Under the new system, drivers will earn ₦150,000 per month, way lower than their potential earnings under the previous model. 

While the drive-to-own scheme allowed drivers to gradually pay for and eventually own their vehicles, many were unable to meet daily repayments due to Nigeria’s economic downturn. Some abandoned their vehicles altogether, as inflation and unbearable financial stress kept increasing.

Beyond the changes in driver compensation, CIG Motors also plans to overhaul LagRide’s fleet by introducing electric vehicles (EVs). 

However, there is no official timeline for this transition, and there are still questions about Nigeria’s readiness for large-scale EV adoption. Challenges such as charging infrastructure, electricity supply, and affordability could hinder the change.

The Lagos State government’s role in facilitating this transition is also not yet solid. While the state has previously promoted cleaner energy initiatives, widespread EV adoption will require policy support, infrastructure development, and incentives to make the switch feasible for drivers and the entire transport sector.

This operational change also coincides with the exit of Tumi Adeyemi, the founder of Zenolynk Technologies, which co-developed LagRide with the Lagos State government. 

Adeyemi has reportedly moved on to Qoray, a mobility company focusing on electric vehicles. 

Zenolynk Technologies helped in LagRide’s initial rollout in 2021, introducing a financing model that allowed drivers to lease GAC vehicles after making a ₦700,000 down payment. 

The plan required daily instalments for four years, bringing the total cost to ₦10 million. However, the economic situation in Nigeria has made it difficult for drivers to sustain these payments, leading to high dropout rates.

How This Compares to Uber and Bolt

The transition to a salaried model makes LagRide’s structure fundamentally different from ride-hailing competitors like Uber and Bolt, which operate on a commission-based system where drivers retain autonomy over their earnings. 

While Uber and Bolt drivers complain about high commissions and fluctuating income, they still have the flexibility to increase their earnings based on ride volume.

With LagRide’s new model, drivers will have stable but lower earnings, possibly affecting recruitment and retention. Some drivers argue that ₦150,000 per month is unsustainable, especially given the high cost of living in Lagos. 

One driver familiar with the situation said, “This is not what we signed up for. The government promised we would own these cars. Now, they want to turn us into employees.”

The restructuring of LagRide is successful, it may inspire similar models in the transport sector. However, without adequate policies on EV adoption, driver welfare, and long-term sustainability, the move could also backfire, making LagRide less patronized compared to its competitors.

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