The curious story of MyKab, a driver-backed e-hailing app that was killed and reborn as LagRide

In September 2020, a new taxi-hailing app, MyKab, was introduced into the Nigerian e-mobility space. The platform, backed by a drivers’ union, the Professional E-hailing Drivers and Private-Owners Association (PEDPA) of Nigeria, was created to “plug the disconnect between drivers, riders and the e-hailing company”.

These disconnects have mostly led to a massive distrust between the major players in the industry,” according to its then Business Development Manager, Busola Agboola.

Indeed, the people wanted MyKab to be a company that was “driver inclusive” and would end the mistreatment that had plagued them over time. Aside from regular ride-hailing service, the company aimed to provide car leasing and hire-purchase services to drivers.

Indeed, Agboola believed that the platform would ensure drivers were treated deservedly. They included several welfare packages, such as car insurance and health insurance, to ensure that drivers are compensated and catered for.

“We understand and appreciate the fact that drivers are stakeholders; without them, the e-hailing sector is nothing but a fleet of cars. Thus, their mental, physical, financial and overall well-being are paramount to the ride-hailing ecosystem,” Agboola said.

Sadly, this well-intentioned company died in its infancy. Yet, everyone agreed on one fact: the drivers for whom the app was to serve had a hand in its premature demise.

The story behind MyKab’s creation

The story behind MyKab’s creation is quite complex.

The idea was purportedly conceived in another union, the National Union of Professional E-hailing Drivers Partners (NUPEDP), a predecessor of the current e-hailing drivers’ union, the Amalgamated Union of App-based Transporters of Nigeria (AUATON). Founded between 2017 and. 2018, NUPEDP’s goal was to advocate for drivers’ rights and welfare.

However, conflict arose when some members, purportedly led by one Idris Shonuga, started canvassing for the union to back another app company. They advocated that the union make the drivers’ database available to it, so it can competently compete with Uber and Bolt.

Then president, Comrade Ayoade Ibrahim, opposed this idea. According to him, this would compromise the union’s primary objective: not to back any ride-hailing company against another. This, he said, would amount to a conflict of interest, as the union cannot be business owners and regulators of the business at the same time.

“A union’s duty is to protect its members’ interests across all app companies, not favour any particular one,” he argued.

Following the disagreement, Idris Shonuga and his supporters broke away to form a new organisation called the PEDPA. As expected, the objective of this new association was to create a drivers’ database for an e-hailing app which it would back.

Following wide consultations with drivers, several meetings with technical teams, fundraisers and several testing stages by drivers, MyKab was launched at a grand event in Ikeja.

Conflict and the role of app companies

According to sources, the primary motive for creating MyKab was to create a monopoly in the then-emerging e-hailing industry.

First, the app was not only created but also promoted and financed by a drivers’ body, PEDPA. Some claimed that a section of the association sought to exploit the drivers’ database for advertising.

Besides the possibility of violating Nigerian data laws, the development could put the new app and the drivers’ association in direct conflict with other app companies such as Uber and Bolt.

Indeed, some early members believe that the mistrust that exists between Uber/Bolt and the drivers’ union started here.

However, there are conflicting perspectives on who was responsible for the mistrust, which made MyKab a stillbirth. One school of thought put it squarely on the PEDPA, insisting that rather than providing unfair and unbiased union leadership, the association compromised itself by promoting one company while disparaging others.

Indeed, they claimed that the association’s executives attended a meeting with the Lagos State Government and representatives from Uber and Bolt wearing branded t-shirts with MyKab and PEDPA logos. Thus, they were believed to be provoking other stakeholders, beyond just promoting an app.

“That’s why Uber and Bolt didn’t want to see union because of what those guys did,” a source told Technext.

Read also: “It is criminal to accept outside-app rides”- CIG warns LagRide drivers amid protests

The other school of thought, sympathetic to PEDPA, placed the blame squarely on the founder and president of the NUPEDP, Comrade Ayoade Ibrahim.

According to them, Ibrahim destroyed the MyKab project through a series of propaganda. He lied about both the project and the entire team that tried to promote it.

“In fact, he tagged us ‘app promoters’ and the app companies, particularly Bolt, picked it up and tagged us their competitors in the presence of the government at the state ministry of transport,” a former leader of PEDPA, now a chieftain of the AUATON in the Southwest, said.

A third school of thought, drawn from regular drivers, believe that the big app companies like Uber and Bolt sponsored many drivers to sabotage the fledgling app with propaganda and killed it untimely.

“The name of the App is called MYKAB, endowed with driver-friendly features, but it was killed by drivers. They started by accusing the union and drivers who built the app of trying to monopolise the e-hailing industry, claiming they want to make money out of drivers. They also brought in serious conflict-of-interest issues. These drivers were sponsored by app companies to fight against there own app, while they are giving them promo and bonuses,” a longtime driver said.

On his part, Comrade Ayoade denied any allegations of collaborating with app companies like Uber and Bolt, stating that he has always been dedicated to fighting for drivers’ rights against the same app companies.

“I strongly deny accusations of collaborating with app companies to sabotage MyKab. In fact, I’ve consistently fought for drivers’ justice globally, and many app companies have petitioned against me for my work. I believe those guys should focus on their business and refrain from interfering with union or association affairs, rather than exploiting drivers for their self-interest,” he said.

He buttressed the third school of thought, noting that drivers began questioning the platform’s sponsorship and transparency.

He also accused a leader of PEDPA of cronyism and nepotism by appointing his wife as a board director of MyKab. Finally, he alleged that several financial discrepancies were uncovered.

“These issues, combined with the app’s subpar performance and technical crashes, led to a loss of sponsor, support, and ultimately, its shutdown,” he said.

The demise of Mykab and rebirth as LagRide

Following the demise of MyKab, the Lagos state government, which had been looking to develop a state-backed ride-hailing app, reportedly acquired the template of MyKab from its PEDPA sponsors.

Indeed, some sources reported that the template was willingly handed over to the government.

“The same individuals provided Lagride management with MyKab’s templates, which Lagride polished for their advantage,” a source said.

This appears to be one part of the story all sides agree on, as a former chieftain of the PEDPA echoed the same. He, however, said the team learned a great deal from the ordeal, the greatest lesson being that they won’t be trying anything similar in a long time.

“The people in government took it up and used the already existing ideas built in MyKab to develop another app called Lagride, and the result is out there for all to see. We learn a lot from our efforts in MyKab, and I doubt if anyone in this team will ever think of going that route again because of the kind of country and people we are,” he finished.

See also: Is the car financing model of Moove and Lag Ride killing the gig in cab-hailing for drivers?