LagRide, under the visionary stewardship of CIG Motors and founder Chief Diana Chen, is reshaping Lagos’s ride-hailing industry. By prioritising sustainability, innovation, and an elevated user experience, the platform is shifting Lagosians from dependence on unreliable, second-hand vehicles to a structured, smarter taxi system ready to meet the demands of the future.
Things to note:
1,000 electric vehicles in the first rollout phase
5,000 new vehicles coming to Lagos
Up to ₦240,000 daily revenue for LagRide drivers
$260 million investment into LagRide by Lagos State and CIG Motors
Lagos, Nigeria’s pulsating economic hub, is notorious for relentless traffic congestion, a daily challenge for millions navigating its expansive metropolis. On any given day, commuters weave through a labyrinth of yellow minibuses, private cars, and motorbike taxis, inching forward at a pace that often turns short journeys into hours‑long ordeals. With over 20 million residents sprawled across 1,171 km², the need for efficient, reliable, and safe transportation is paramount.
Historically, Lagosians faced an unstructured taxi system dominated by ageing, unreliable vehicles that compromised passenger safety and comfort. This chaotic transport terrain begged for a modern transportation solution that is safe, affordable, and dependable.
This began to change when Chief Diana Chen of CIG Motors stepped into Nigeria’s automotive market. The roads were flooded with ageing imports, second-hand cars long past their prime. Even cars on ride-hailing apps looked aged. Mobility was chaotic, unreliable, and inefficient. Chen saw through the gridlock: a country ready to leapfrog into structured, sustainable transport, if the right systems aligned. Her plan, a calculated pivot, was to replace the ageing vehicles on the roads with cleaner, better alternatives. That vision became LagRide.
LagRide first appeared on the city’s roads not simply as another ride‑hailing app, but as a public‑private partnership involving GAC Motors, the Lagos State government’s investment arm, Ibile Holdings, and a technology partner. Its promise was simple: brand‑new, locally assembled vehicles; transparent, state‑backed pricing; and an asset‑financing “drive‑to‑own” model that would let drivers pay daily instalments toward ownership. At last, Lagos would have a structured, professional taxi system. Yet, transforming vision into reality proved more arduous than anticipated.
By 2024, it was clear that the original model needed more than tweaks; it needed new leadership and a fresh vision.
The drive-to-own-experiment
LagRide’s initial model required drivers to pay a ₦700,000 down payment followed by daily instalments over four years to own their vehicles. Under ideal conditions, drivers would gradually own their GAC mini SUVs or saloon cars—modern alternatives to the creaking, second‑hand imports that dominated Nigerian roads.
But growth tested the model and operational inefficiencies emerged. Drivers began bypassing the app. Remittances dipped. Technical and operational cracks allowed leakages that strained the platform. Maintenance schedules faltered. Internally, the system sometimes failed to respond quickly when drivers raised issues. The problem wasn’t the idea; it was the infrastructure underneath.
Moreover, rising inflation and surging fuel costs turned financial commitments into unsustainable burdens. Many drivers abandoned vehicles they could no longer afford, shrinking the fleet and eroding commuters’ trust.
“Drivers told us they loved the idea of ownership,” says one early LagRide operations manager. “But when they saw their daily take‑home vanish, that dream turned into a nightmare.”
Compounding the financial strain were operational challenges: revenue losses from off‑app rides and occasional lapses in coordination between Lagos State regulators and the platform’s tech teams. Despite best intentions, LagRide’s promise of reliability began to falter just as the app gained traction.
A new era under CIG Motors
By late 2024, both government and private stakeholders agreed that LagRide needed reinvention. The baton passed to CIG Motors, the Chinese automaker responsible for GAC’s Nigerian operations.
Chairman Diana Chen, who was already a major force behind GAC’s local assembly lines, assumed oversight of LagRide’s technical and fleet management. Alongside Chen, Jubril Arogundade, an aficionado in Nigeria’s automobile ride-hailing sector, came on board with a responsibility to rebuild from the ground up.
Smart cab lessons LagRide 2.0
Arogundade’s road to LagRide began with Smart Cab, his first foray into the ride‑hailing space. Like LagRide, Smart Cab sought to offer cleaner, more comfortable vehicles than the status quo—but without the backing of a large manufacturer or government partner, it struggled to scale. Still, the experience proved invaluable.
“Smart Cab taught me about the fragility of driver economics and the importance of transparent systems,” Arogundade reflects in an interview with Guardian Life. “I learned that if technology fails—even briefly—riders lose faith. And if drivers can’t predict their income, they simply leave.”
A pivotal meeting with Chief Diana Chen during Smart Cab’s formative months cemented his path forward. Impressed by Arogundade’s vision, Chen became both a mentor and investor. Their shared conviction that Lagos deserved a smarter taxi system laid the groundwork for LagRide’s next chapter.
“We are not replicating the past—we’re designing a future Lagos deserves,” Chen says.
Under Arogundade’s leadership, LagRide 2.0 marries the resources of CIG Motors with a lean, data‑driven operating model. The drive‑to‑own experiment gave way to a more efficient drive-to-earn empowerment structure: drivers can now earn up to ₦240,000 per day, with performance bonuses and access to health insurance, training programmes, and structured exit packages.
“This isn’t just about rides. It’s about setting new standards for urban mobility,” Arogundade says.
Built for Lagos
LagRide 2.0 is not simply a reboot; it is a comprehensive urban mobility platform. Its enhancements include:
Advanced app interface: A redesigned, intuitive user experience streamlines ride requests, real‑time tracking, and payments. Riders can preload their wallets, choose between cards or transfers, and view driver ratings with a single tap. LagRide now has fully digitised payments.
AI‑driven route optimisation: Machine learning algorithms analyse traffic patterns, adjusting routes dynamically to minimise waiting times, reduce fuel consumption, and improve ride lengths.
Smart scheduling tools: The “Fixed Daily Transit” (FDT) feature lets commuters pre‑set habitual routes—home to work, office to school—alerting nearby drivers to guarantee recurring pickups. Riders can also join existing driver schedules, filling vacant seats and maximising efficiency.
Enhanced safety protocols: In‑car AI surveillance records journeys, while verified driver credentials and an emergency‑response button offer extra reassurance to both riders and LagRide’s compliance team.
Business subscriptions: “LagRide for Business” provides corporations with subscription‑based employee transport, complete with reporting dashboards, prioritised booking, and brand safety guarantees.
Fleet maintenance and expansion: Rigorous half‑monthly servicing schedules and remote diagnostics ensure vehicles remain roadworthy. A joint $260 million investment between CIG Motors and Lagos State will deliver 5,000 new GAC cars—1,000 of them electric—over the next two years.
Car partner feature: This offering allows individuals and corporate investors to buy cars and place them on the platform. It enables passive income generation while supporting fleet expansion, ensuring more availability and stability on the road.
Jolly card feature: This is a pre-loaded gift card that allows users to gift safe, comfortable rides. Whether for loved ones, colleagues, or corporate incentives, the Jolly Card promotes cashless travel and easy access to rides across Lagos.
Through these features, LagRide positions itself ahead of global competitors like Uber and Bolt, offering Lagos‑tailored solutions rather than one‑size‑fits‑all technology.
Electrifying the fleet
Perhaps the most audacious component of LagRide 2.0 is its commitment to electric mobility. With fuel subsidies putting pockets under financial strain and urban pollution rising, Lagos faces an urgent need to rethink vehicle energy sources.
LagRide’s first tranche of 1,000 electric vehicles (EVs), slated for rollout in mid‑2025, will take to the roads once charging‑station infrastructure reaches critical mass—another area where CIG Motors is partnering with government and private investors.
“Electric mobility is no longer a luxury—it is an imperative,” Chen asserts. “Our investment in charging infrastructure and technician training will make EVs a viable option for Lagosians.” Challenges remain: grid instability, intermittent power supply, and limited station networks. But the vision is clear: a cleaner, quieter, more cost‑effective taxi ecosystem that benefits both commuters and the environment.
Balancing driver concerns
No systemic overhaul proceeds without friction. Many drivers joined LagRide eager for vehicle ownership; moving to a drive-to-earn model initially felt like losing a pathway to an asset. Arogundade acknowledges their unease:
“We’re not removing ownership—we’re redefining how drivers can achieve it, with performance‑based programmes and structured savings options,” he tells Guardian Life. Exit packages reward those who choose to leave, while top‑performing drivers qualify for new vehicle‑ownership schemes within the drive-to-earn framework. Financial planning workshops and digital training academies further empower drivers to chart long‑term careers.
Additional driver benefits include advanced insurance coverage for both driver and vehicle, access to HMOs, and group-life insurance covering accidents and death. Mental health resources and an emergency fund are also available to support their overall well-being. This emphasis on stability over speculation reflects a deep understanding of Lagos’s taxi economy, where unpredictability breeds disengagement.
Impact beyond commutes
LagRide’s transformation ripples across Lagos’s socio‑economic fabric. Beyond drivers, the platform employs customer service agents, fleet mechanics, data analysts, and app developers, roles that deepen the city’s digital and manufacturing capacities. In addition, CIG Motors’ growing Nigerian assembly operations create skilled jobs and foster auto‑sector development.
Reduced travel times translate into higher workplace attendance, improved access to education, and more time for family and leisure. Each electric vehicle removed from petrol consumption cuts thousands of kilograms of CO₂ annually, improving air quality in densely populated neighbourhoods. For Lagos State, LagRide is more than a taxi programme. It is infrastructure for the 21st century, aligning with broader goals around smart cities and sustainable growth.
A blueprint for Africa
If LagRide succeeds in delivering on its promise, it will offer a replicable model for other African megacities. Cities from Nairobi to Accra grapple with similar congestion, pollution, and unreliable transit. By combining public backing, private investment, and entrepreneurial agility, LagRide demonstrates how structured innovation can overcome entrenched inefficiencies.
Global mobility experts often point to benchmarks in Dubai, Singapore, and Shenzhen. But Lagos may become the first example in Sub‑Saharan Africa of a truly integrated, scalable ride‑hailing ecosystem.
Steering toward tomorrow
LagRide Reloaded is still in its early miles. The platform will evolve, the fleet will grow, and driver incentives will be fine‑tuned. Charging stations must multiply, and power grids must stabilise. But with Diana Chen’s strategic vision and Jubril Arogundade’s operational grit, the partnership has the ingredients for lasting change.
“Our goal is sustainability—both economically and environmentally,” Arogundade reminds us.
For Lagosians long resigned to gridlock and unpredictability, LagRide Reloaded offers a glimpse of what’s possible when ambition meets structure. With its wheels firmly on the road and its eyes on the horizon, LagRide is steering Lagos toward a smarter, safer, and more connected future.
As Lagosians begin to download the upgraded app, the true test looms: can a city defined by long lines of rickety commercial vehicles sitting in gridlock embrace a new era of mobility?
