CIG Motors, the local distributor of GAC vehicles, has taken over operational management of LagRide, a state-backed ride-hailing platform in Lagos. This move marks the end of Zenolynk Technology Ltd.’s involvement, following the abrupt termination of their contract by the Lagos State government.
CIG Motors, led by Chairwoman Diana Chen, is replacing LagRide’s drive-to-own model with a salaried employment structure. Drivers will now receive a fixed monthly salary of ₦150,000, a significant change from the previous system where drivers could earn up to ₦10,000 daily after expenses. This shift aims to stabilize driver earnings but has raised concerns about reduced income potential.
CIG Motors plans to phase out the current fleet in favor of electric vehicles, aligning with global trends toward sustainable mobility. However, no timeline has been disclosed for this transition, which could pose logistical challenges for both drivers and the company.
Launched in 2021, LagRide was designed as a state-backed alternative to traditional taxis and a competitor to global ride-hailing platforms. The previous asset-financing model required drivers to make a ₦700,000 down payment and daily installments over four years, totaling ₦10 million for a vehicle. Rising inflation and living costs made these payments unsustainable for many, leading some drivers to abandon their vehicles.
CIG Motors’ new approach aims to improve driver satisfaction and retention. However, success will depend on addressing the financial and operational challenges faced by drivers and the platform.
