LagRide Faces Driver Churn Amid App Transition and Management Disputes
Despite surpassing ₦600 million ($389,911) in gross merchandise value (GMV) on March 25, 2025, LagRide, the Lagos State government-backed ride-hailing platform, is grappling with a high rate of driver churn this month. The situation has escalated as drivers face potential vehicle seizures and arrests for resisting the adoption of the platform’s newly launched mobile app.
The conflict follows CIG Motors’ takeover of LagRide’s operations, intensifying tensions between the Chinese automotive company and the platform’s drivers. At the core of the dispute is the abrupt termination of Lagos State’s contract with the original app developer, Zenolynk Technology Ltd. Drivers claim the new app has lower fares, poor functionality, and restrictive payment terms, making it difficult for them to operate efficiently. As a result, many are reluctant to switch to the updated platform, leading to fewer active drivers despite increased ride demand.
A recent notice from LagRide’s management addressed to drivers highlighted several issues, including:
- Refusal to accept ride requests without valid justification.
- Accepting cash payments instead of using the app.
- Encouraging riders to book trips outside the LagRide platform.
- Promoting rival ride-hailing services.
Driver Dissatisfaction Fuels Protest Plans
Internal documents indicate that while ride bookings have surged, the number of available drivers remains insufficient to meet Lagos’s growing demand for transport. Several drivers, speaking on condition of anonymity, confirmed ongoing discussions about organising a protest to push back against the management’s recent enforcement measures.
“There is an order to start impounding vehicles of non-compliant drivers,” one driver revealed. “We are planning a strategy meeting on Thursday to press home our demands.”
The rising frustration is not limited to the app transition alone. Many drivers are dissatisfied with LagRide’s asset financing model, citing:
- High operating costs
- Soaring fuel prices
- Limited driver welfare support
As a result, numerous drivers have expressed their preference to pay off their outstanding vehicle loans and exit the program rather than continue under CIG Motors’ management.
“Many of us want to settle our debts and move on rather than remain under the new administration,” explained Sam Mfuk, a LagRide driver who recently attended a meeting with CIG Motors representatives in Victoria Island, Lagos.
CIG Motors Faces Growing Pressure
With just one month at the helm of LagRide, CIG Motors is facing an uphill battle to regain the confidence of its drivers. Industry analysts suggest that a more inclusive approach, such as retaining driver-friendly features from the previous app and offering flexible payment models, could help ease tensions.
The ongoing standoff highlights a larger issue within Nigeria’s ride-hailing sector, where rising operational costs, platform changes, and regulatory shifts continue to challenge both drivers and investors.
