CIG Motors, the Chinese automaker behind GAC vehicles in Nigeria, has assumed full operational control of LagRide, the Lagos State-backed ride-hailing platform. As part of the transition, the company is replacing the existing drive-to-own scheme with a fixed salary structure, where drivers will earn ₦150,000 monthly. This move has sparked concerns among drivers who argue that the new model significantly reduces their earning potential compared to the previous system.
Under the phased-out arrangement, drivers had the opportunity to own their vehicles by making daily payments, but economic hardships made it difficult for many to meet these obligations. Some abandoned their vehicles due to rising inflation and financial strain.
Beyond changes in driver compensation, CIG Motors also plans to introduce electric vehicles (EVs) into the LagRide fleet, though the timeline for this transition remains unclear. Experts warn that Nigeria’s inadequate charging infrastructure and electricity supply could pose challenges to large-scale EV adoption.
The operational shift also 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 instalments over four years. However, the worsening economic climate led to high dropout rates, prompting the shift to a salaried model. Adeyemi has since moved on to Qoray, a mobility company focused on electric vehicles.
With the new structure, LagRide now differs fundamentally from competitors like Uber and Bolt, which operate on a commission-based model that allows drivers to control their earnings. While Uber and Bolt drivers often complain about high commissions, they still enjoy income flexibility, unlike LagRide’s fixed-wage model. Some drivers have expressed dissatisfaction, arguing that ₦150,000 per month is unsustainable given Lagos’ high cost of living. Analysts suggest that while the restructuring could stabilize driver income, it may also reduce LagRide’s attractiveness, potentially affecting its competitiveness in the ride-hailing market.