CIG Motors, the Chinese automotive company responsible for assembling and distributing GAC vehicles in Nigeria, has reportedly assumed full operational control of LagRide, Lagos State’s government-backed ride-hailing platform. According to multiple drivers familiar with the development, this move signals a major shift in the management and operational structure of LagRide, with significant implications for its drivers and the overall ride-hailing landscape in Lagos.
As part of the management takeover, CIG Motors, under the leadership of Chairwoman Diana Chen, is expected to introduce sweeping reforms, including a complete overhaul of LagRide’s vehicle financing and driver compensation models. According to sources, CIG Motors will now be responsible for managing the drivers, overseeing the vehicle fleet, optimizing the ride-hailing platform, and restructuring the vehicle financing system.
One of the most notable changes will be the replacement of LagRide’s “drive-to-own” scheme—where drivers made daily payments toward eventual vehicle ownership—with a fixed salaried employment model. Reports indicate that drivers will be offered a monthly salary of ₦150,000 (approximately $98) under the new system.
This proposed shift represents a major departure from LagRide’s original model, which aimed to empower drivers by enabling them to own their vehicles after completing a structured payment plan. Under the previous arrangement, drivers typically earned around ₦10,000 daily (after deducting expenses like fuel and repayments), often accumulating more than ₦300,000 monthly — double what is now being offered as a flat salary.
While the new salaried system might provide income stability, it effectively removes the path to vehicle ownership, a key attraction of LagRide’s initial offering. This change has raised concerns among drivers about potential loss of income and long-term asset acquisition.
Another significant development is CIG Motors’ intention to transition LagRide’s fleet to electric vehicles (EVs). Though specific timelines for the EV rollout have not been disclosed, this move aligns with broader efforts to introduce more sustainable and eco-friendly transportation solutions within Lagos.
In addition to operational changes, LagRide’s leadership and technical partnership are undergoing a realignment. Tumi Adeyemi, founder of Zenolynk Technologies, the company that co-developed and co-managed LagRide in partnership with the Lagos State Government, has officially exited the venture. Adeyemi has since joined Qoray, a mobility company focusing on electric vehicles, signaling a broader industry shift towards EV solutions. Adeyemi declined to comment on the exit.
Launched in 2021, LagRide was positioned as a state-endorsed alternative to traditional taxis and international ride-hailing platforms like Uber, Bolt, and inDrive. Its innovative asset-financing model allowed drivers to lease GAC vehicles by paying a ₦700,000 ($458) upfront deposit, followed by daily installments for up to four years. The total cost of ownership for vehicles such as GAC mini-SUVs and saloon cars was pegged at ₦10 million ($6,541).
However, economic challenges, including rising inflation and a high cost of living, have made it increasingly difficult for drivers to meet their repayment obligations. Many have been forced to abandon their vehicles, undermining the platform’s goal of empowering drivers through ownership.
CIG Motors’ proposed salary-based structure aims to address driver attrition and financial instability that have plagued LagRide’s operations in recent months. By offering consistent monthly income, the company appears to be betting on driver satisfaction and operational efficiency as key pillars for LagRide’s next phase.
Additionally, the anticipated EV rollout signals a strategic pivot toward sustainability and innovation, positioning LagRide as a potential leader in Nigeria’s evolving transportation sector.
While questions remain about the long-term implications of these changes, especially regarding driver welfare and ownership opportunities, it’s clear that LagRide is entering a new era—one defined by corporate management and green technology.
