Drivers operating on the LagRide app have abandoned the app over what they described as poor performance. This was disclosed to Technext by a handful of drivers led by the spokesperson of the Lagos Chapter of the Amalgamated Union of App-based Transporters of Nigeria (AUATON), Comrade Stephen Iwindoye.
The resolution was part of the outcome of a meeting between the drivers and representatives of both CIG Motors and Ibile Holdings, the local owners of the company.
According to the drivers, their concerns include: a new payment structure that requires 10,000 naira daily payment, low demand, absence of Google Maps on the app which has led to drivers and riders guessing each’s locations, low patronage from low app visibility and limited reach and overall poor performance of the app.
According to Iwindoye, the problem started after a transition from the old LagRide management (Zeno) to a new management (CIG Motors). Following that, the Chinese-owned CIG discarded the old app in favour of theirs.
However, the drivers say that the app that they introduced was worse. “The app is not for us who are doing drive-to-own (DTO). The app is for drive-to-earn (DTE). People that they want to be paying salary. So the app was giving us a lot of stress and a lot of glitches. Plus, their policies were terrible. Yet they still want us to be marketing the app,” he explained.
LagRide’s tough transition
LagRide started working towards changing its management late in 2024. CIG Motors was touted as more preferred than the former manager, Zeno because of their focus on electric cars.
However, the switch has not gone as smoothly as envisaged.
The first major problem is the app efficiency. The app does have a wallet or feature to make daily remittances. It also does not have spaces for riders to input their destination. Also, fare estimates are not displayed, making riders and passengers haggle about destination and price.
Another issue is that the app does not have Google Maps which many drivers consider to be the best and most robust for navigation. The map on the app, according to the drivers, does not cover nearly all of Lagos.
Then there is the concern over the overall efficiency of the app which has left drivers frustrated while working. According to the drivers, the app is replete with glitches which lead to poor navigation and a poor working experience for them.
But beyond the app, the new management also suffers from operational policies. First is a payment structure that mandates ALL payments to be remitted to LagRide. This is against the former practice where drivers only remit their obligated payments to the company. A communication on the new payment structure by the company to the drivers seen by Technext states:
“Please note that going forward, all fares will be remitted directly to the LagRide account. Reimbursement to captains will be made one week in arrears, Fridays of every week. The captains will retain N10,000 per day from their earnings as a stop-gap until the day of reimbursement.”
The company says the measure is aimed at allowing for proper reconciliation and ease of tracking of drivers.
See also: We are suffering: Drivers accuse LagRide of arbitrary car retrieval, unfair repair policy
Reacting to this, the Lagos PRO, during the meeting between drivers and the app operators, said the policy is unfair and will negatively impact drivers’ financial stability.
“How can you tell us that you will be giving us 10,000 naira every day? You should know how much we are using to run our operation everyday. Ask yourself if 10,000 naira can help you to survive for the day. The minimum fuel we use every day is 20,000 naira and you are giving me 10,000 naira. What kind of money is that? Is it the money to buy fuel or the money to eat?” he said.
The drivers rejected the 10,000 naira a day policy, demanding that the payment structure be revised to ensure that all earnings are disbursed to drivers within 24 hours. They said the current delay in payment is already causing undue financial hardship and affecting their ability to provide quality services.
They also demanded app optimisation to eliminate glitches and the introduction of Google Maps on the app. They tasked the app company to embark on a massive state-wide advertising campaign for awareness and to drive demand rather than using drivers for marketing. They also campaigned for a two-year exit plan for drivers operating the ride-to-own plan.
The drivers said they would abandon the app until the corrections were made.
“We have given them all the features that they should have transitioned from Zino’s app to their CIG LagRide app,” a driver representative, Abby said. “If they don’t do that no one is going to use their app. We have suspended the app. We are not using the app. They said we should give them 24 hours and we are waiting for them. But for now, nobody is using that app,” she said.
Following the meeting, the Executive Director of Lagos Ride, Hon Adeniyi Saliu, asked the new management team to work on all the improvements advocated for by the drivers. He also mandated them to ensure payments are disbursed within 24 hours, and to expand the app’s coverage to every area in Lagos State and neighbouring boundaries, enabling drivers to operate in more areas and increase their earning potential.
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