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CIG Motors, the Chinese automaker behind GAC vehicles in Nigeria, has assumed control of LagRide, the Lagos State-backed ride-hailing platform, in a move expected to overhaul its operations and financing model.
According to multiple drivers familiar with the development, the company is set to introduce a salaried employment structure, replacing the controversial drive-to-own model that has been a source of frustration for drivers due to steep repayment terms.
Under the new arrangement, CIG Motors will oversee driver operations, fleet management, platform optimization, and vehicle financing.
The company, led by Chairwoman Diana Chen, is expected to shift from the current daily installment plan which allowed drivers to work towards vehicle ownership to a fixed salary system. Sources indicate that drivers will now earn a monthly salary of ₦150,000 ($98), a significant reduction from their previous earnings under the drive-to-own model.
Additionally, CIG Motors plans to replace the existing fleet with electric vehicles (EVs), though the timeline for this transition remains unclear.
The leadership shake-up has also affected the platform’s technical operations.
Tumi Adeyemi, founder of Zenolynk Technologies, the company that co-developed and co-owned LagRide with the Lagos government, has left to join Qoray, a mobility startup specializing in EVs, according to sources.
Launched in 2021, LagRide was positioned as a state-backed alternative to Uber, Bolt, and inDrive, offering drivers the option to lease GAC vehicles after making an initial ₦700,000 ($458) down payment, followed by daily installments over four years.
The total cost of ownership for a vehicle reached ₦10 million ($6,541). However, Nigeria’s economic downturn and rising inflation made the repayment plan unsustainable for many drivers, leading to vehicle abandonments.
The shift to a salaried system means that drivers will no longer work toward owning their vehicles, a significant departure from the platform’s original promise.
Some drivers fear that the new model could reduce their earning potential, as many currently take home over ₦10,000 ($6.50) daily after fuel costs and payments.
While CIG Motors has yet to make an official statement, the changes indicate a strategic shift aimed at stabilizing driver earnings, reducing vehicle defaults, and transitioning to an electric fleet. Whether this move will improve driver satisfaction or create new challenges remains to be seen.
