CIG Motors, a Chinese automobile company responsible for assembling and distributing GAC vehicles in Nigeria, has reportedly taken over the management of LagRide, a ride-hailing company backed by the Lagos government. The transition includes significant changes to LagRide’s operations, including vehicle financing and driver employment structure.
Under the new management, CIG Motors is expected to revamp LagRide’s vehicle financing model, shifting from a drive-to-own system to a salaried employment structure. This change may impact driver earnings, as participants are set to receive a fixed monthly salary instead of working towards vehicle ownership.
Additionally, CIG Motors plans to transition LagRide’s current fleet to electric vehicles, although details about the timeline for this switch remain undisclosed. The leadership change also involves technical operations adjustments, with reports indicating that the co-founder of Zenolynk Technologies, the company behind LagRide, has moved on to join another mobility firm.
LagRide was launched in 2021 as a cost-effective alternative to traditional taxis and global ride-hailing services in Lagos. The platform’s asset-financing model, which allowed drivers to lease GAC vehicles, faced criticism due to challenging repayment terms amidst Nigeria’s economic challenges. The new management aims to stabilize driver earnings and enhance retention through the introduction of a salaried approach.
With a focus on introducing electric vehicles and a revised employment structure, CIG Motors aims to improve driver satisfaction, potentially leading to a smoother experience for all involved.