CIG Motors Takes Control of LagRide, Shifting to Salaried Driver Model and Electric Vehicles
CIG Motors has taken over LagRide, aiming to reform its vehicle financing model. Under new management, drivers will receive a salaried structure instead of the former drive-to-own model. Alongside this, the company plans to shift to electric vehicles, addressing drivers’ financial challenges and improving earnings stability.
CIG Motors, the distributor of GAC vehicles in Nigeria, has assumed management of LagRide, a ride-hailing service backed by the Lagos government. This takeover represents a critical change in LagRide’s operations, primarily aimed at reforming the vehicle financing model, which has faced criticism from drivers. The adjustments will include the management of driver operations, fleet supervision, platform enhancement, and vehicle financing.
Diana Chen, Chairwoman of CIG Motors, intends to abolish LagRide’s drive-to-own model, which allowed drivers to make daily payments toward vehicle ownership. Instead, a salaried structure will be introduced, where drivers will earn a monthly salary of ₦150,000 ($98). This change may detract from drivers’ potential vehicle ownership, significantly affecting their earnings compared to previous compensation.
Additionally, there are plans to transition LagRide’s fleet to electric vehicles (EVs), although specific timelines for this shift remain undisclosed. In conjunction with these changes, Tumi Adeyemi, the founder of Zenolynk Technologies, which co-developed LagRide, has left the company for a position at Qoray, another mobility firm focusing on electric vehicles.
LagRide was established in 2021 as a state-supported alternative to traditional taxis in Lagos and as a more affordable option compared to global competitors like Uber and Bolt. The platform initially operated on an asset-financing scheme, allowing drivers to lease vehicles with a ₦700,000 ($458) down payment and subsequent daily payments over four years, summing to ₦10 million ($6,541). However, escalating inflation and living costs have rendered these payments burdensome for many drivers, leading to some abandoning their vehicles. CIG Motors’ new salary approach aims to stabilize driver earnings and encourage retention while enhancing overall driver satisfaction.
CIG Motors’ acquisition of LagRide signifies a pivotal evolution in the ride-hailing sector in Nigeria. By implementing a salaried model and transitioning to electric vehicles, the company aims to address the grievances of drivers facing tough financial conditions. This strategic move could lead to increased driver satisfaction and operational efficiency, potentially benefiting the entire ecosystem.
Original Source: techcabal.com
