CIG Motors, the Chinese language car firm that assembles and distributes GAC automobiles in Nigeria, has taken over operational administration of LagRide, the Lagos government-backed ride-hailing firm, in line with three drivers aware of the matter. The takeover marks a big shift in LagRide’s operations as CIG Motors is predicted to overtake the car financing mannequin that has drawn criticism from drivers combating steep reimbursement plans.
Below the brand new construction, the corporate will handle driver operations, fleet oversight, platform optimization, and car financing, the drivers stated, asking to not be named as a result of the knowledge isn’t public.
CIG Motors, led by Chairwoman Diana Chen, additionally plans to switch LagRide’s drive-to-own mannequin—the place drivers make day by day installments towards car possession—with a salaried employment construction. One driver aware of the matter stated individuals will obtain a month-to-month wage of ₦150,000 ($98).
The shift to a salaried construction deters drivers from possession of the car, which was beforehand promised underneath the drive-to-own mannequin. The mannequin additionally implies that drivers’ earnings may very well be considerably impacted. LagRide drivers take dwelling a mean of 10,000 day by day after eradicating gasoline prices and making repayments. The proposed 150,000 wage is barely a fraction of what drivers take dwelling within the earlier mannequin.
The corporate additionally plans to section out its present fleet in favor of electrical automobiles (EVs), although no timeline for the transition has been disclosed, the individual stated.
A CIG Motors consultant declined to remark.
The management change additionally indicators a shift within the platform’s technical operations. Tumi Adeyemi, founding father of Zenolynk Applied sciences—the corporate that co-developed and co-owned LagRide with the Lagos authorities—has left LagRideto be part of Qoray, a mobility firm specializing in electrical automobiles, in line with two drivers with data of the matter.
Adeyemi declined to remark.
Launched in 2021, LagRide was launched as a state-backed different to conventional Lagos taxis and a lower-cost competitor to international ride-hailing platforms like Uber, Bolt, and inDrive. The platform operates underneath an asset-financing mannequin that enables drivers to lease GAC automobiles by making a ₦700,000 ($458) down cost and day by day installments over 4 years. The full price for the automobiles—both a GAC mini-SUV or a saloon automotive—quantities to ₦10 million ($6,541).
Nevertheless, rising inflation and elevated residing prices in Nigeria have made these funds troublesome for a lot of drivers. Some deserted their automobiles, unable to fulfill the reimbursement phrases. The brand new administration’s salaried strategy seeks to stabilize driver earnings and enhance retention.
With plans to roll out electrical automobiles and a salaried mannequin, CIG Motors appears to be betting that happier drivers will imply a smoother journey for everybody.