Change in Management
Previously a partnership between the Lagos State government and Zenolynk Technology Ltd—the original developer of the platform’s app—LagRide is now managed by CIG Motors Co. Ltd, a Chinese state-owned automaker of GAC Motors.
CIG Motors took over the company's management in March after the partnership between Lagos State and Zenolynk Technology ended. Following Zenolynk’s exit, CIG launched a new app for drivers after the original developer reportedly shut down the previous version.
However, less than a month after assuming control, CIG Motors is facing a growing crisis.
Root of the Crisis
In a notice obtained by Vanguard, LagRide management accused drivers of discouraging riders from using the LagRide app and instead promoting alternative platforms like InDrive and Bolt.
The notice, sent to drivers on March 11, also alleged that drivers were refusing trips without valid reasons and accepting cash payments outside the platform—violations that the company deemed as sabotage.
To enforce compliance, LagRide warned that it would engage the Lagos State Task Force and regulators to monitor and arrest non-compliant drivers.
"Non-compliant captains (drivers) will face strict disciplinary measures, including possible arrest, vehicle impoundment, and legal action," the notice stated.
Drivers Push Back Against Allegations
In response, LagRide drivers, represented by the Amalgamated Union of App-Based Transporters of Nigeria (AUATON), rejected the allegations. They claimed that management failed to address systemic challenges affecting their operations.
In a statement signed by AUATON’s Public Relations Officer, Comrade Iwindoye Steven, the drivers argued that LagRide’s failure to resolve key issues had led to operational difficulties, frustration, and income loss.
AUATON also condemned the management’s threat to involve law enforcement, warning that such actions would only escalate tensions.
"We take exception to the threats of disciplinary measures, legal action, and the involvement of the Lagos State Task Force. These measures will only heighten tensions rather than address the root cause of the problem," AUATON stated.
Issues With the New LagRide App
One of the key concerns raised by drivers is the functionality of the new LagRide app. A driver, speaking anonymously, described it as unfriendly and inefficient.
"The app drains our phone batteries and consumes a lot of data. Also, finding pickup and destination locations is difficult. We have to zoom in and manually check pin drops, which is frustrating," the driver explained.
Accusations of Financial Exploitation
Drivers also accused LagRide of financial exploitation, particularly over the company’s move to disable the cash payment option. According to them, this was a strategy to force drivers to remit their earnings through the app, where they would only receive payments weekly.
They rejected this arrangement, arguing that despite paying multiple levies—including insurance, communication, dashcam, and phone fees—LagRide does not cover vehicle maintenance or repairs.
"The final straw was when they tried to control our income. They turned off the cash payment option and only allowed wallet payments. This means that after a trip, the app directs the rider to pay into the company’s account instead of ours," one driver said.
As a result, many drivers have refused to work for weeks, opting instead to negotiate fares directly with passengers.
Planned Protest at Alausa
Given that the Lagos State Government, through IBILE Holdings, is a major investment partner in LagRide, the drivers have decided to take their protest to the government secretariat at Alausa.
AUATON warned that failure to address the drivers’ grievances could lead to a full-scale strike, potentially shutting down LagRide’s operations.