CIG Motors Takes Over LagRide, Introduces New Driver Salary Model

CIG Motors has taken over LagRide’s operations in Lagos, shifting from a drive-to-own vehicle model to a salaried structure for drivers, who will now earn ₦150,000 monthly. This change aims to stabilize earnings amid rising costs in Nigeria. CIG Motors also plans to replace the existing fleet with electric vehicles, indicating a significant operational overhaul.

CIG Motors, the distributor for GAC vehicles in Nigeria, has assumed operational management of LagRide, the state-supported ride-hailing service based in Lagos. This transition indicates a transformative phase for LagRide, especially in terms of addressing the financing model for drivers that has faced criticism due to heavy repayment obligations. The company is expected to implement significant changes, including managing driver operations and fleet oversight, while optimizing its platform.

Under the new management, CIG Motors, chaired by Diana Chen, aims to transition from LagRide’s original drive-to-own vehicle ownership model to a salaried employment framework. Drivers participating in this new model are expected to earn a monthly salary of ₦150,000 ($98). This change diversifies drivers’ earnings but indeed restricts the potential for vehicle ownership that was guaranteed under the previous arrangement. Consequently, this could greatly affect drivers, who previously earned an average of ₦10,000 per day after expenses and repayments.

In addition to these managerial changes, CIG Motors plans to replace LagRide’s existing fleet with electric vehicles, although a timeline for this initiative has not been released. Meanwhile, a representative from CIG Motors has refrained from making any comments regarding these developments.

The management restructure also alters LagRide’s technical operations, as Tumi Adeyemi, founder of Zenolynk Technologies, has departed from LagRide to pursue an opportunity with Qoray, a firm focusing on electric mobility. Adeyemi has chosen not to provide comments on his departure.

Launched in 2021, LagRide was conceived as a state-backed alternative to conventional Lagos taxis and a cost-effective competitor to international ride-hailing platforms such as Uber, Bolt, and inDrive. The platform historically utilized an asset-financing model, allowing drivers to lease GAC vehicles through an initial down payment of ₦700,000 ($458) followed by installment payments over four years, totalizing ₦10 million ($6,541) for vehicle acquisition.

However, many drivers have faced challenges meeting these financial obligations due to soaring inflation and living costs in Nigeria, with some even abandoning their vehicles. The newly proposed salaried model aims to enhance earnings stability and improve driver retention. CIG Motors is betting that satisfied drivers will lead to improved service outcomes.

In summary, CIG Motors’ acquisition of LagRide management signifies a noteworthy transformation aimed at improving driver conditions amidst rising operational challenges. The introduction of a salaried model and the phase-out of ownership paths seems designed to stabilize driver earnings. Moreover, transitioning to an electric vehicle fleet reflects a progressive approach toward sustainable mobility in Nigeria. Such strategic changes emphasize the company’s focus on fostering a positive driving experience, ultimately aiming for greater service efficacy.

Original Source: techcabal.com