CIG Motors Co. Ltd., a Nigerian representative of Chinese state-owned automaker GAC Motors has assumed operational management of LagRide, a government-backed ride-hailing platform, according to several persons familiar with the matter. This significant move suggests that Lagos State relinquished their controlling stake in the ride hailing company to foreign partnership for possible financial gains.
The change of control marks the end of a five-year technical partnership between the Lagos State government and Zenolynk Technology Ltd., the app’s original developer. Zenolynk, led by Tumi Adeyemi, launched LagRide in 2020 with a “ride-to-own” scheme for drivers. However, sources indicate the partnership ended in March 2025.
Adeyemi refused to respond to comments for this story.
At least 10 drivers close to the matter described the change of leadership from local to foreign as abrupt, stressing that no official reason has been given for the shift. Adeyemi has reportedly joined Qoray Mobility, a Sterling Bank-backed electric mobility initiative which has plans to front a rent to own car project similar to LagRide, the drivers said.
Under the LagRide’s asset financing scheme, drivers make an upfront payment of ₦700,000 ($791) for brand-new GAC vehicles and spread the rest of the payment for four years through daily payments of ₦10,522. LagRide was initially a joint venture between Ibile Holdings (the Lagos State Government’s investment arm) and Zenolynk Technologies (the technology service provider). Drivers also have an option to exit the scheme after two years if they can outrightly cover the entire cost of vehicles offered to them.
A big fix
Adeyemi’s departure from LagRide though seemingly peaceful came with teething problems. The transition has been fraught with issues, including a week-long service disruption due to a dispute over the app’s intellectual property. This could indicate that Adeyemi, the initial developer, possibly refused to hand over access to the source code to the state government. At the moment, Adeyemi’s app is no longer available on Google Play Store.
CIG Motors subsequently launched a new app, which drivers found unsuitable due to low fees, poor mapping, excessive app size, difficulties in remitting daily asset fees and receiving payments, plus a policy that allows drivers to take home a maximum of ₦10,000 daily, seven drivers told Condia.
The new app was reportedly designed for corporate clients and the rollout of GAC’s Wuling electric vehicles, a shift away from LagRide’s original mass-market focus. This is in line with CIG Motors’ plan to deploy electric vehicles in Lagos by June 2025, which Condia hinted last year. Drivers expressed frustration with the lack of ridership and the app’s incompatibility with their existing operations.
“We do not understand the new LagRide app and our users are unaware the app has been changed,” one driver told Condia.
“The old LagRide app was not only easier to use in terms of user experience, the drivers no longer receive ride requests. Drivers have not been working,” the driver added.
The drivers of the yet to be unveiled EVs will be expected to drive corporates to and from work for a monthly fee of ₦150,000 ($96.55). They don’t have the option to pay to own the assets. This model heavily contrasts with LagRide’s current model of daily asset repayments and commissions on rides.
An end to the asset financing model
In a meeting with the drivers on Thursday, Chief Diana Chen, the chairman of CIG Motors Nigeria, told drivers that Ibile, the initial owners of LagRide through the Lagos State government, transferred the liabilities of the drivers to them. She explained that the model she adopted with the new app is a proven way to get more users and profitability in the long term.
She said that marketing efforts using social media and influencers will scale next week to improve awareness for the new LagRide app. While rides on the app will be reduced for new users, drivers will be paid the balance by CIG Motors.
However, drivers demanded to settle their remaining car loan balances and exit the scheme, citing a lack of trust in the new management
“What we want is for the remainder of the debt regarding the cars to be given to us, so we can pay and exit the scheme,” one of the drivers said. A counterbalancing act would require an exchange of the gasoline cars for the electric cars CIG has. But this may never happen.
“Drivers are done with this scheme and would love to pay their liabilities than continue under a new management (with CIG Motors), another driver, Sam Mfuk, told Condia after a series of meetings held on Thursday with the Chinese automaker in Victoria Island, Lagos.
The drivers’ refusal to continue with the scheme echoes long years of dissatisfaction following Lagos State Governor Jide Sanwoolu’s rise to power. Some of these disaffections can be traced to high operating costs, rising fuel prices, concerns about driver welfare and a shrinking middle class unable to afford rides. Established in 2020 and backed by the Lagos State Government to rival ride hailing giants like Bolt, Uber and InDrive, LagRide has never achieved massive adoption, and remained in the number 4 position.
In December 2023, Ibrahim Ayoade, the general secretary of the App-Based Transporters of Nigeria (AUATON), faulted LagRide’s financing model, claiming it encouraged driver partners to demand unrealistic returns from drivers. He said the association had critiqued this “killer model” with no success.
In January 2024, the same drivers protested the death of Adebayo Padmore, a driver with LagRide who died to the pressures of the mobility company which required them to work 10 hours daily or clock a total of 150 kilometres.
At least 20 ride-hailing drivers gathered at the Lekki hospital, echoing LagRide’s failure in its duty to drivers. “They stopped paying for our health insurance and car maintenance months ago,” said a driver who asked not to be named for fear of reprisals.
Light at the end of the tunnel?
Hon. Adeniyi Saliu, Executive Director of LagRide, has directed the platform’s new management team to prioritize addressing driver grievances and implement key operational improvements in the next 24 hours. The directive follows recent concerns raised by drivers regarding app functionality and operational challenges. Additionally, it allows drivers on the scheme for two years to exit LagRide after paying their liabilities. This order aims to provide drivers greater operational flexibility and enhance their earning potential by accessing a wider customer base.
