In a significant development within Lagos State’s transportation sector, CIG Motors Co. Ltd., the Nigerian representative of the Chinese state-owned automaker GAC Motors, has assumed operational management of LagRide, the state’s government-backed ride-hailing platform. This transition marks the conclusion of a five-year technical partnership between the Lagos State Government and Zenolynk Technology Ltd., the original developer of the LagRide application. Zenolynk, under the leadership of Tumi Adeyemi, launched LagRide in 2020 with a “ride-to-own” scheme for drivers. However, Zenolynk states that this partnership ended on the 10th of March 2025.
LagRide’s Inception and Objectives
LagRide was initiated as a collaborative effort between the Lagos State Government and Zenolynk Technology Ltd. The platform aimed to provide a safer and more comfortable mobility option for residents, commencing with a fleet of 1,000 brand new GAC MOTOR vehicles. The primary objective was to offer a reliable and affordable means of travel, thereby improving the quality and safety of transportation within Lagos. The vehicles deployed under LagRide were equipped with comprehensive insurance policies, dashboard cameras providing audio and video feeds to the control command centre, and physical panic buttons connected to the command centre. Additionally, both drivers and users had access to SOS buttons on their respective applications, ensuring enhanced safety measures.
Transition to CIG Motors’ Management
The recent takeover by CIG Motors signifies a pivotal shift in LagRide’s operational dynamics. The company plans to revamp the vehicle financing model, addressing previous challenges and aiming to improve the overall efficiency of the service. This development aligns with Lagos State’s broader vision of integrating advanced technological solutions into its transportation sector, thereby enhancing user experience and operational effectiveness.
Shift in Operational Model
Under the previous asset financing scheme, drivers made an upfront payment of ₦700,000 for brand-new GAC vehicles and spread the remaining payment over four years through daily payments of ₦10,522. This model allowed drivers the option to own the vehicles after the payment period. However, with CIG Motors’ takeover, there is a shift towards a fixed salary structure, where drivers earn ₦150,000 per month. This change has raised concerns among drivers, as the new earnings are perceived to be lower than the potential income under the previous model.
Introduction of Electric Vehicles
CIG Motors plans to overhaul LagRide’s fleet by introducing electric vehicles (EVs). However, there is no official timeline for this transition, and questions remain about Nigeria’s readiness for large-scale EV adoption. Challenges such as charging infrastructure, electricity supply, and affordability could hinder the change.
Government’s Response and Future Outlook
The collaboration between Lagos State and CIG Motors reflects a commitment to modernizing the transportation landscape through strategic partnerships. The introduction of additional vehicles, including Compressed Natural Gas (CNG) and electric vehicles, is anticipated to promote a safer and cleaner environment, aligning with global sustainability trends.
As CIG Motors takes the helm of LagRide’s operations, the focus will likely be on addressing existing challenges, optimizing the service delivery model, and ensuring that the initiative meets its objectives of providing safe, reliable, and affordable transportation options for Lagos residents. The success of this transition will depend on effective stakeholder engagement, continuous improvement of technological platforms, and responsiveness to the needs of both drivers and passengers.
