CIG Motors Assumes Control of LagRide, Redefines Driver Employment Structure

CIG Motors has taken over LagRide’s operations, moving away from the drive-to-own model to implement a salaried employment structure for drivers. This shift aims to stabilize earnings in light of rising living costs. Additionally, plans to transition to an electric vehicle fleet are in motion, indicating a significant operational change for the ride-hailing company.

CIG Motors, the distributor of GAC vehicles in Nigeria, has assumed operational management of LagRide, the Lagos government-supported ride-hailing service. This takeover signifies a major change in LagRide’s operations, with CIG Motors poised to enhance vehicle financing, which has faced criticism due to burdensome repayment plans affecting drivers. The new management will also oversee driver operations, fleet management, and platform enhancement.

Under the new structure, CIG Motors intends to replace LagRide’s current drive-to-own model with a salaried employment model, as confirmed by an anonymous driver source. This change will offer drivers a fixed monthly salary of ₦150,000 ($98), moving away from the previous ownership promise associated with the drive-to-own plan. Consequently, driver earnings, which averaged around ₦10,000 daily after expenses, could see a significant downturn.

Additionally, CIG Motors has set goals to transition LagRide’s fleet from traditional vehicles to electric ones, although a specific timeline for this shift has not yet been provided. A representative from CIG Motors opted not to comment on these developments.

Challenges in the existing operational model were highlighted by the departure of Tumi Adeyemi, co-founder of Zenolynk Technologies, which collaboratively developed LagRide with the Lagos government. Adeyemi has transitioned to Qoray, an electric vehicle-focused mobility firm, but refrained from making a statement regarding these changes.

LagRide was initiated in 2021 primarily as a state-backed alternative to conventional taxi services and aimed to compete against global ride-hailing services such as Uber and Bolt. The platform allowed drivers to lease GAC vehicles through a financing model that necessitated a ₦700,000 ($458) down payment and daily installments over four years, leading to a total vehicle cost of ₦10 million ($6,541). The economic climate, marked by inflation and increased costs, has rendered these payments unsustainable for many drivers, prompting some to abandon their vehicles. The new management seeks to enhance driver stability and retention through a more predictable salary model.

As CIG Motors pursues both the implementation of electric vehicles and the introduction of a salaried structure, the company appears to be investing in driver satisfaction, anticipating that this will facilitate improved operational experiences for all involved stakeholders.

The recent takeover of LagRide by CIG Motors represents a transformative period for the ride-hailing platform in Nigeria. By shifting from a drive-to-own model to a salaried employment approach, CIG Motors aims to provide drivers with greater financial stability amidst economic challenges. Furthermore, the move towards an electric vehicle fleet aligns with global sustainability trends. These changes may enhance driver satisfaction and retention, ultimately contributing to the platform’s long-term viability.

Original Source: techcabal.com