The LagRide Service has been Taken Over by CIG Motors, the Local Distributor of GAC Vehicles

CIG Motors, the company behind GAC vehicles in Nigeria, has taken over LagRide, a ride-hailing service supported by the Lagos State Government. This change is expected to bring about some big changes to how LagRide operates, especially for its drivers.

Before, LagRide worked on a drive-to-own model where drivers made daily payments to eventually own their vehicles. However, many drivers struggled with these payments due to rising costs and inflation in Nigeria. Some even had to abandon their vehicles because they couldn’t afford the payments anymore.

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Now, under CIG Motors, things are going to be different. The company plans to switch to a salaried system where drivers will earn a monthly salary of ₦150,000 (about $98). While this might stabilize their income, it also means they won’t have the chance to own their vehicles anymore.

This takeover by CIG Motors is not just about changing how drivers get paid; it’s also about updating the fleet. The company wants to replace the current vehicles with electric ones, which is part of a broader plan to make transportation in Lagos more sustainable. Although there’s no specific timeline for when this will happen, it’s clear that CIG Motors is serious about modernizing LagRide.

LagRide was first introduced in 2021 as a cheaper alternative to traditional taxis and global ride-hailing services like Uber and Bolt. It allowed drivers to lease GAC vehicles by paying a down payment of ₦700,000 ($458) and then making daily installments over four years. However, the financial strain was too much for many, leading to a lot of abandoned vehicles. CIG Motors hopes that by offering stable salaries, drivers will be happier and more likely to stay with the service.

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There have also been some changes in leadership. Tumi Adeyemi, one of the founders of Zenolynk Technologies, which co-developed LagRide with the Lagos government, has left to join Qoray, a company that specializes in electric vehicles. This move is another sign of how LagRide is evolving under CIG Motors.

The partnership between CIG Motors and the Lagos State Government shows a shared commitment to improving transportation in the city. By introducing electric vehicles and new management practices, CIG Motors is betting that happier drivers will lead to a smoother ride for everyone.

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