CIG Motors, the Chinese automobile company that assembles and distributes GAC vehicles in Nigeria, has taken over operational management of LagRide, the Lagos government-backed ride-hailing company, according to three drivers familiar with the matter. The takeover marks a significant shift in LagRide’s operations as CIG Motors is expected to overhaul the vehicle financing model that has drawn criticism from drivers struggling with steep repayment plans.
Under the new structure, the company will manage driver operations, fleet oversight, platform optimization, and vehicle financing, the drivers said, asking not to be named because the information is not public.
CIG Motors, led by Chairwoman Diana Chen, also plans to replace LagRide’s drive-to-own model—where drivers make daily installments toward vehicle ownership—with a salaried employment structure. One driver familiar with the matter said participants will receive a monthly salary of ₦150,000 ($98).
The shift to a salaried structure deters drivers from ownership of the vehicle, which was previously promised under the drive-to-own model. The model also means that drivers’ earnings could be significantly impacted. LagRide drivers take home an average of 10,000 daily after removing fuel costs and making repayments. The proposed 150,000 salary is only a fraction of what drivers take home in the previous model.
The company also plans to phase out its current fleet in favor of electric vehicles (EVs), though no timeline for the transition has been disclosed, the person said.
A CIG Motors representative declined to comment.
The leadership change also signals a shift in 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 LagRideto join Qoray, a mobility company specializing in electric vehicles, according to two drivers with knowledge of the matter.
Adeyemi declined to comment.
Launched in 2021, LagRide was introduced as a state-backed alternative to traditional Lagos taxis and a lower-cost competitor to global ride-hailing platforms like Uber, Bolt, and inDrive. The platform operates under an asset-financing model that allows drivers to lease GAC vehicles by making a ₦700,000 ($458) down payment and daily installments over four years. The total cost for the vehicles—either a GAC mini-SUV or a saloon car—amounts to ₦10 million ($6,541).
However, rising inflation and increased living costs in Nigeria have made these payments difficult for many drivers. Some abandoned their vehicles, unable to meet the repayment terms. The new management’s salaried approach seeks to stabilize driver earnings and improve retention.
With plans to roll out electric vehicles and a salaried model, CIG Motors seems to be betting that happier drivers will mean a smoother ride for everyone.
