Drivers' Concerns Regarding Drive-to-Own Program
LagRide, in addition to its e-taxi services, presents a drive-to-own option for its drivers. Technext has spoken with several drivers who began their tenure under the drive-to-earn scheme. These drivers reported being promised a transition to the drive-to-own scheme after six months of service.
However, one driver, who stated he was in his sixth month of employment, indicated no immediate prospect of migration to the drive-to-own scheme. He further commented that he has not encountered any driver who has successfully entered the scheme, as most drivers reportedly leave the job around their fifth or sixth month. This, he suggested, is due to the company implementing exceedingly high financial conditions.
The drivers contend that the financial prerequisites for the drive-to-own scheme are nearly impossible to meet, particularly given that they would be operating exclusively on the Lagride app, which they described as not being widely used.
Details of the Drive-to-Own Plans
These financial conditions are presented across three distinct plans. The first plan requires an initial deposit of N1 million. Under this arrangement, drivers are obligated to make a daily remittance of N77,000 and are prohibited from taking the vehicles home.
The second plan involves an initial deposit of N5 million, coupled with a three-year repayment schedule. The third plan, a N10 million initial payment plan, is the one under which drivers might be permitted to take the vehicle home.
Lagride's Response to Driver Claims
In response to these allegations, Lagride's spokesperson, Ifeanyi Abraham, refuted the claims, stating that there is indeed a "fully functional drive to own pathway." He acknowledged that under the previous drive-to-own system, numerous vehicles were stolen, with drivers devising methods to bypass the established procedures.
Consequently, the company introduced a new system designed to safeguard its assets, which resulted in the implementation of the current high initial deposit schemes.
Captains can own vehicles with a 5 million naira initial payment and 24-month instalments or a 10 million naira initial payment and 18-month instalments. These structures are active and available.
Abraham also highlighted that Lagride has established partnerships with several Nigerian banks to broaden financing alternatives, thereby enhancing ownership accessibility for captains who may not be able to afford the down payment immediately.
He emphasized that Lagride is committed to setting a new standard for mobility throughout Africa, grounded in structure, accountability, and opportunity. The company remains dedicated to elevating standards, improving livelihoods, and supporting the mobility objectives of Lagos.
There has been pushback from those resistant to reform, but Lagride continues to make strong inroads by combining technology, transparency and training to uplift the entire ecosystem.
Previous Driver Complaints Regarding Remittance Requirements
Technext previously reported on complaints from drivers operating on Lagride concerning its daily remittance requirement, which ranged from N70,000 to N100,000. One captain, who requested anonymity due to ongoing employment with the company, shared that the demanding situation has compelled them to work a minimum of 17 hours daily and sleep in their car.
Driver's Account of Daily Remittances and Low Patronage
We remit 100,000 naira every day. If you give them less than 40,000 naira, they will seize the vehicle, and you must pay a 100,000 naira penalty before they will give it back. Personally, I have paid it once. So we struggle to make 80,000 to 100,000 naira every day. It is even hard to make N50,000 on their app in a day because of low patronage.
The drivers also voiced accusations against the Chairman of LagRide, Chief Diana Chen, alleging insensitivity and profiteering. One driver recalled her saying, "Can your government give you a brand new car?"
Lagride's Clarification on Remittance Figures
Responding to these assertions, Mr. Abraham stated that the circulated remittance figures are inaccurate. He elaborated that because the company covers all major operational expenses that drivers in a standard ride-hailing model would typically bear independently, the captains' earnings represent their net income after these costs have been deducted.