CIG Motors Takes Over LagRide: Major Changes Ahead for Drivers and Operations

CIG Motors has taken over LagRide, aiming to overhaul its operations by implementing a salaried model for drivers and transitioning to an electric vehicle fleet. The move responds to criticisms of the previous vehicle financing structure, which struggled amid rising inflation. This change aims to improve driver retention and satisfaction.

CIG Motors, the authorized distributor of GAC vehicles in Nigeria, has assumed control of LagRide, a government-backed ride-hailing service in Lagos. This significant operational transition is anticipated to transform the vehicle financing strategies, which have faced criticism from drivers due to challenging repayment plans. CIG Motors is expected to enhance key areas such as driver operations, fleet management, and platform efficiency, as per information from anonymous sources.

Under the leadership of Chairwoman Diana Chen, CIG Motors plans to replace LagRide’s previous drive-to-own model, wherein drivers could own their vehicles through daily payments, with a salaried model. This newly proposed structure offers drivers a monthly salary of ₦150,000 ($98), which is projected to negatively impact their overall earnings as compared to the earlier system where drivers earned around ₦10,000 daily after expenses.

Additionally, CIG Motors will move towards an electric fleet to replace the current vehicles, although a specific timeline for this transition remains undisclosed. This strategy may further redefine the operational landscape of LagRide amid growing awareness of sustainable travel options.

The leadership alteration extends to technical operations as well, with Tumi Adeyemi, founder of Zenolynk Technologies, leaving LagRide to pursue opportunities at Qoray, a specialized electric mobility firm.

LagRide was launched in 2021 to provide a state-sponsored alternative to existing taxi services in Lagos, aiming to compete with platforms such as Uber and Bolt. Its financing model allowed drivers to lease GAC cars by paying a ₦700,000 ($458) initial fee and financing the remaining amount over four years. However, due to rising inflation, many drivers have struggled with their payments and some have abandoned their vehicles altogether. CIG Motors’ new salaried approach is viewed as a potential solution to enhance driver satisfaction and retention.

In conclusion, CIG Motors’ takeover of LagRide signifies a major operational shift aimed at transforming the ride-hailing service’s financing model. By implementing a salaried structure and shifting toward an electric vehicle fleet, the company seeks to alleviate the financial pressures facing drivers and establish a more sustainable and efficient operation. The move may potentially enhance driver satisfaction and retain talent within the platform, enabling a better experience for all stakeholders involved.

Original Source: techcabal.com