Drivers under the government-backed ride-hailing platform, LagRide, have threatened to withdraw their services following threats by the platform’s operators to involve the Lagos State Task Force in arresting them over alleged misconduct.
The Amalgamated Union of App-Based Transporters of Nigeria (AUATON) revealed this development through its Public Relations Officer (PRO), Mr. Steven Iwindoye, in Ikeja on Thursday.
Earlier, LagRide management had accused some drivers of discouraging riders from using the LagRide app while promoting rival platforms such as InDrive and Bolt.
In a notice sent to drivers, the company accused some of refusing trips without valid reasons and accepting cash payments instead of processing fares through the app. The management described these actions as policy violations and sabotage.
To enforce compliance, LagRide warned that Lagos State Task Force officials and regulators would monitor and arrest non-compliant drivers.
“Non-compliant captains (drivers) will face strict disciplinary measures, including possible arrest, impoundment of vehicles, and legal action,” the notice stated.
Drivers push back, threaten strike
However, Iwindoye warned LagRide management against impounding vehicles or arresting drivers, stating that such actions could escalate tensions.
“The government’s failure to address our concerns may lead to protests and strike action, including shutting down LagRide,” he said.
He explained that drivers resorted to offline negotiations and cash payments because LagRide disabled the in-app cash option, allegedly to force drivers to remit earnings and receive payments weekly.
Iwindoye criticized the arrangement, stating that despite multiple levies imposed by CIG Motors—including insurance, communication, dashcam, and phone charges—the company does not cover vehicle maintenance or repairs.
Background on LagRide’s ownership shift
LagRide was initially a partnership between the Lagos State Government and Zenolynk Technology Ltd, the original app developer.
- However, in March, CIG Motors Co. Ltd—a Chinese state-owned automaker of GAC Motors—took over management after the state government’s partnership with Zenolynk ended.
- Following the transition, CIG Motors launched a new app after the original developer reportedly shut down the old one.
- Despite the relaunch, LagRide faces a growing crisis barely a month into operations, as drivers continue offline protests, demanding an urgent resolution of app-related issues.
What you should know
- In July 2024, the Lagos State Government’s IBILE Holdings Limited signed a joint venture partnership with CIG Motors Company Limited.
- The partnership involved the acquisition of 5,000 brand-new vehicles for the LAGRIDE fleet, injecting $260 million into Lagos’ economy.
- The State Governor, Mr Babajide, who supervised the partnership signing, said the new fleet would include 1,000 electric vehicles in the state’s efforts to reduce its fossil fuel footprint.
- The Governor stated that the initiative was part of his administration’s vision to transform and modernize public transportation.