CIG Motors, the Chinese automobile company responsible for assembling and distributing GAC vehicles in Nigeria, has taken over the operational management of LagRide, the Lagos State-backed ride-hailing service. CIG Motors is expected to revamp driver operations, fleet management, and vehicle financing, according to sources familiar with the matter.
A major change under the new structure is the replacement of LagRide’s drive-to-own model—which allowed drivers to make daily payments toward vehicle ownership—with a fixed salary structure. Under the new arrangement, drivers will earn ₦150,000 ($98) per month, a stark contrast to the estimated ₦10,000 daily take-home pay they made under the previous system. While the salaried model offers stability, it removes the opportunity for drivers to eventually own their vehicles, which was one of LagRide’s key selling points.
Additionally, CIG Motors plans to phase out LagRide’s current fleet in favor of electric vehicles (EVs), though the timeline for this transition remains unclear.
The takeover has also triggered changes 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 exited the project. According to insiders, he has now joined Qoray, a mobility startup specializing in electric vehicles.
Launched in 2021, LagRide was introduced as a state-backed alternative to Uber and Bolt, operating under an asset-financing model. Drivers were required to pay a ₦700,000 ($458) deposit and daily installments over four years, with a total repayment cost of ₦10 million ($6,541) for a GAC mini-SUV or saloon car. However, Nigeria’s rising inflation and economic hardships made it difficult for many drivers to keep up with payments, leading to widespread vehicle abandonment and dissatisfaction with the program.
However, it remains to be seen whether drivers will embrace the new structure or push back against the loss of vehicle ownership opportunities.
