According to the drivers, who requested anonymity due to the confidential nature of the information, CIG Motors will manage driver operations, fleet oversight, platform enhancements, and vehicle financing under the new arrangement.
Shift to Salaried Employment Model
Led by Chairwoman Diana Chen, CIG Motors plans to replace LagRide’s existing drive-to-own model—where drivers make daily installments toward vehicle ownership—with a salaried employment structure. According to one driver familiar with the matter, participants will receive a fixed monthly salary of ₦150,000 ($98).
This shift represents a departure from the previous model, which promised drivers eventual ownership of their vehicles. Under the drive-to-own system, drivers typically took home an average of ₦10,000 daily after deducting fuel costs and repayment installments. The proposed ₦150,000 monthly salary is significantly lower than what many drivers previously earned, raising concerns about the financial impact on participants.
Transition to Electric Vehicles
CIG Motors also plans to phase out LagRide’s current fleet in favor of electric vehicles (EVs), though no specific timeline for the transition has been disclosed. This move aligns with global trends toward sustainable mobility solutions but could pose logistical and financial challenges for drivers and the company.
A representative from CIG Motors declined to comment on the developments.
Leadership and Technical Changes
The leadership change also signals a shift in LagRide’s technical operations. Tumi Adeyemi, founder of Zenolynk Technologies—the company that co-developed and co-owned LagRide with the Lagos government—has left the platform to join Qoray, a mobility company specializing in electric vehicles, according to two drivers with knowledge of the matter.
Adeyemi declined to comment on her departure.
Background on LagRide
Launched in 2021, LagRide was introduced as a state-backed alternative to traditional Lagos taxis and a lower-cost competitor to global ride-hailing platforms like Uber, Bolt, and inDrive. The platform operated under an asset-financing model, allowing drivers to lease GAC vehicles by making a ₦700,000 ($458) down payment and daily installments over four years. The total cost for the vehicles—either a GAC mini-SUV or a saloon car—amounted to ₦10 million ($6,541).
However, rising inflation and increased living costs in Nigeria have made these payments unsustainable for many drivers, leading some to abandon their vehicles. The new management’s salaried approach aims to stabilize driver earnings and improve retention, though it remains to be seen how drivers will adapt to the changes.
Looking Ahead
With plans to introduce electric vehicles and a salaried employment model, CIG Motors appears to be betting that improved driver satisfaction will lead to a more efficient and sustainable ride-hailing service. However, the success of these initiatives will depend on how well they address the financial and operational challenges faced by drivers and the platform.