We are suffering: Drivers accuse LagRide of arbitrary car retrieval, unfair repair policy

Drivers operating under the e-mobility company, LagRide, have accused the company of high-handedness and inhumane treatment.

One of the drivers (captains or pilots as they are called) said the issue with his car started when he discovered a fanbelt fault. After fixing the fanbelt the next day, he discovered that the engine was making some noise on his way to pick up a rider. The car stopped working on the road prompting the driver to call a towing vehicle to tow it to JAC Motors at Ojota for repairs.

“At JAC, the car was checked and they discovered a fault in the engine and gave me a 2.5 million naira budget to change the oil pump, and gasket and effect some other repairs. Since I have been trying to get assistance from LagRide. I have been to their office at Lagos Island three times and they told me that I have to repair the car myself. I even tried to talk to them about the insurance, but they did not listen. They keep telling me to repair the car myself,” the driver lamented.

This feedback was more surprising for the drivers who claim they remit 1,499 naira daily for vehicle servicing. They believe that the accumulated sum should be able to fund vehicle repairs when required.

Other drivers expressed their angst during a meeting with the chairperson of the Lagos chapter of the Nigerian Labour Congress (NLC), Comrade Funmilayo Sessi earlier in the month. The meeting was facilitated by the Lagos chapter of the Amalgamated Union of App-based Transporters of Nigeria (AUATON).

At the meeting, 14 LagRide drivers expressed grievances against the Lagos state-backed e-mobility company. These grievances range from scarcity of rides on the Zeno app and arbitrary retrieval and re-issuance of vehicles, to making drivers cough out as much as millions in naira for vehicle repairs even though they are being charged daily for vehicle servicing.

One of the drivers, Comrade Wasiu, while expressing his profound disappointment, stated that “Lagride has become a source of suffering rather than a solution, contrary to the expectations of drivers who initially supported its establishment.”

Low rides and mandatory remittance on LagRide

One of the critical issues plaguing drivers on the platform is a low volume of rides on the company’s Zeno app- where they are only allowed to operate. This means that the captains hardly make enough money to get by.

This, they said, is coupled with high commissions and a mandatory daily deduction of 10,599 naira regardless of how much they make.

Indeed, a captain popularly known as Elder, criticized LagRide for failing to uphold an initial agreement to monitor ride allocations and provide support for drivers. He also expressed frustration over high charges and lack of advertisement which is resulting in low requests.

To meet their mandatory daily remittances, many drivers resort to working for extended hours, usually up to 18 hours a day. Some have also onboarded themselves to alternative platforms like Uber and Bolt while others accept off-app trip offers. These attract huge fines and other penalties. But, the drivers said that they had no choice.

Overall, the drivers are scared that they may become irredeemably indebted to the company. This, they fear, will lead to an outright repossession of their vehicles and possible cancellation of their contract.

Arbitrary repossession of vehicles and re-issuance to new drivers

It is not uncommon for the company to suddenly ask a driver to return their vehicle without stating any clear reason. This is supposed to occur when a driver owes the company or has not remitted their daily remittance in a while.

According to the Public Relations Officer of the Lagos AUATON, Comrade Steven Iwindoye, who is himself a LagRide captain, LagRide retrieves and re-issues vehicles for numerous reasons: maintaining control over drivers, generating additional revenue through re-issuance fees that will be paid by the new driver, enforcing compliance with company policies and limiting drivers’ independence.

The practice, he claims, creates significant financial uncertainty and stress for drivers. And it appears that the company has done this to many.

At the meeting where they met the NLC chair, a driver, Comrade Cletus reported that his vehicle was recalled after a change in management. He claimed that he paid 700,000 Naira and received a faulty one. After complaining to the management, they asked him to return it. Afterwards, he received a series of conflicting messages about payments and documentation.

Eventually, the company claimed that they did not have a record of the money he paid.

Another driver who considered himself a pioneer on the platform, Comrade Adeleke claimed that his vehicle was repossessed due to his inability to raise 1 million Naira. According to him, he has been unable to provide for his family since losing his car and has to beg for support.

Similarly, Comrade Ogunleye claimed he was misled into voluntarily returning his vehicle only to find that it had been reassigned to someone else. He wondered why the company had not refunded his accumulated remittances since taking the car.

To make matters worse, once a vehicle is retrieved, the driver loses all their accumulated funds. This has prompted drivers to demand that if a vehicle is retrieved, it should not be reassigned without refunding the initial owners’ payments.

Comrade Orimikoya had perhaps the most painful story of them all. He enumerated how the company repossessed his vehicle because it was driven by someone other than him. He enumerated the financial burdens he had to bear including double taxation and maintenance.

In protest, this driver was reported to have stripped himself naked at the LagRide office.

Expensive vehicle servicing cost

According to the drivers, LagRide deducts the sum of 1,499 naira daily for servicing. However, when the cars develop faults or are due for maintenance, the company asks them to foot the bill without a clear refund policy.

Due to the extended downtime and the huge bills, drivers now resort to fixing damages themselves. Indeed, a driver claimed that most LagRide drivers on the road today fix their vehicles themselves, rather than return them to JAC Motors.

Comrade Ariyo noted that when he took his car for servicing, the company kept charging him the daily servicing fee even when he was not working. He added that after the car was released, he spent an additional 400,000 Naira for further repairs because the repairs carried out by the company were not effective.

Hence, he was surprised when the company presented him with a new bill of 939,000 Naira.

This, he said, left him traumatized

Another pilot, Baba Aliyah also narrated how after paying 700,000 naira, he was given a faulty car. According to him, he had to spend an extra 400,000 naira to fix it.

Steven, the AUATON executive acknowledged that he has received numerous complaints from fellow drivers regarding excessive repair charges.

“I have received numerous complaints from fellow drivers regarding excessive repair charges often reaching ₦1 million or more. These charges frequently appear arbitrary and lack transparency, leaving drivers feeling exploited and exacerbating their financial difficulties,” he said.

In summary

Many drivers hopped on the LagRide platform as an opportunity to own their vehicles. However, several challenges engineered by the company have limited them. These include high commission fees, unrealistic targets, vehicle retrieval and re-issuance and other stringent policies.

To date, only a few drivers have successfully paid off their vehicles and completed their tenure under the LagRide scheme.

Indeed, many drivers do not know of any other driver who has. Many believe that the LagRide model is structured to keep drivers trapped in a cycle of debt, making it impossible for them to attain outright ownership of their vehicles.

To improve drivers’ earnings, the LagRide management should consider strategies to increase the number of ride orders for drivers and reduce the commission that they pay.

The drivers are also asking that the company quit the practice of arbitrary vehicle retrieval and re-issuance as well as provide incentives for drivers to maintain their vehicles.

LagRide management did not respond to messages sent to their official channels as of the time of this report.