CIG Motors, the distributor of GAC vehicles in Nigeria, has taken over the operational management of LagRide, a Lagos government-backed ride-hailing company.
This transition was announced on March 14, 2025, marking a substantial shift in LagRide’s operational structure. The takeover involves CIG Motors managing driver operations, fleet oversight, platform optimisation, and vehicle financing.
CIG Motors ends drive-to-own at LagRide, introduces salaries
Under the new management, CIG Motors plans to replace LagRide’s drive-to-own model with a salaried employment structure. Drivers will receive a monthly salary of ₦150,000, notably lower than their potential earnings under the previous model. One driver noted, “This is not what we signed up for. The government promised we would own these cars. Now, they want to turn us into employees”.
The drive-to-own model allowed drivers to lease GAC vehicles with a ₦700,000 down payment and spread the remaining payment over four years through daily payments of ₦10,522, totalling ₦10 million. However, many drivers struggled with repayments due to economic challenges in Nigeria.
Drivers have also expressed dissatisfaction with the new app introduced by CIG Motors, citing issues such as poor navigation due to the absence of Google Maps, glitches, and a lack of features for daily remittances.
Comrade Stephen Iwindoye, spokesperson for the Lagos Chapter of the Amalgamated Union of App-based Transporters of Nigeria, highlighted these concerns, stating that the app is unsuitable for drivers under the drive-to-own model.
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LagRide to go electric, CIG Motors says
Although no specific timeline has been disclosed, CIG Motors intends to phase out LagRide’s current fleet in favour of electric vehicles (EVs).
This transition aligns with broader efforts to promote cleaner energy but faces challenges such as inadequate charging infrastructure and electricity supply in Nigeria. The Lagos State government has supported cleaner energy initiatives, but widespread EV adoption will require substantial policy support and infrastructure development.
The leadership change at LagRide also involves the departure of Tumi Adeyemi, founder of Zenolynk Technologies, who co-developed LagRide with the Lagos government.
Adeyemi has joined Qoray, a mobility company focusing on electric vehicles. The operational changes at LagRide are part of a broader partnership between CIG Motors and the Lagos State government, including acquiring new vehicles to expand LagRide’s fleet.