CIG Motors Takes Over LagRide: A Shift Towards Salaried Employment and Electric Vehicles
CIG Motors has taken over LagRide, aiming to revamp its operational model by replacing the drive-to-own financing with a salaried employment structure. This change seeks to improve driver earnings amid rising costs. The company also plans to shift towards electric vehicles, although no specific timeline has been provided.
CIG Motors, the appointed distributor for GAC vehicles in Nigeria, has assumed operational management of LagRide, a government-endorsed ride-hailing service in Lagos. This transition is poised to transform LagRide’s operations, particularly with a focus on revising the contentious vehicle financing model that has burdened drivers with steep repayment obligations.
Under the new management framework, CIG Motors will oversee driver operations, fleet management, platform optimization, and vehicle financing. This information was shared by anonymous drivers due to its confidential nature. Chairwoman Diana Chen has been pivotal in driving this takeover and implementing substantial operational changes.
The company plans to replace the existing drive-to-own vehicle ownership model with a salaried employment framework. Reports indicate that drivers will now receive a monthly salary of ₦150,000 ($98), fundamentally altering their earning structure. Notably, this change may discourage drivers from vehicle ownership, promising lower earnings compared to their previous daily take-home pay.
CIG Motors is additionally set to transition LagRide’s traditional fleet to electric vehicles, although a timeline for this shift remains unspecified. A representative from CIG Motors has chosen not to provide further comments on these developments.
The leadership adjustment also brings changes to LagRide’s technical operations. Tumi Adeyemi, the founder of Zenolynk Technologies and a co-developer of LagRide, has departed to join Qoray, a firm specializing in electric mobility. Adeyemi’s lack of comment adds to the uncertainty surrounding the company’s future direction.
Founded in 2021, LagRide was created as a government-supported alternative to conventional taxis and a cost-effective competitor to ride-hailing giants like Uber and Bolt. It initially operated on an asset-financing model that required drivers to make a ₦700,000 ($458) down payment followed by daily installments over four years. However, with the pressures of inflation and rising living costs, many drivers have struggled to maintain these payments, prompting the new management’s strategy aimed at stabilizing earnings and enhancing driver retention.
In summary, CIG Motors’ acquisition of LagRide marks a significant shift in the operational landscape for this ride-hailing service. The transition from a vehicle ownership model to salaried employment reflects an effort to address drivers’ financial challenges and promote stability. Furthermore, the move toward electric vehicles indicates a commitment to modernizing the fleet, pointing to a transformative period for LagRide and its drivers.
Original Source: techcabal.com
