CIG Motors, a Chinese automobile company, has taken over the operational management of LagRide, a Lagos government-backed ride-hailing company, according to three drivers familiar with the matter. This significant shift in LagRide's operations is expected to overhaul the vehicle financing model, which has drawn criticism from drivers struggling with steep repayment plans.

Under the new structure, CIG Motors will manage driver operations, fleet oversight, platform optimization, and vehicle financing. The company, led by Chairwoman Diana Chen, plans to replace LagRide's drive-to-own model with a salaried employment structure. According to one driver familiar with the matter, participants will receive a monthly salary of ₦150,000 ($98).

The shift to a salaried structure means that drivers will no longer have the opportunity to own the vehicles, which was previously promised under the drive-to-own model. This change could significantly impact drivers' earnings, as they currently 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.

In addition to the changes in the employment structure, CIG Motors also plans to phase out its current fleet in favor of electric vehicles (EVs), although no timeline for the transition has been disclosed. This move is likely to have a significant impact on the environment and could be a step towards a more sustainable future for the ride-hailing industry.

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 LagRide to join Qoray, a mobility company specializing in electric vehicles, according to two drivers with knowledge of the matter.

LagRide was launched in 2021 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. The takeover marks a significant shift in LagRide's operations, and it will be interesting to see how this new approach plays out in the Nigerian ride-hailing market.