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Crisis hits LagRide, drivers threaten protest as operators move to withdraw vehicles

LagRide

Crisis hits LagRide, drivers threaten protest as operators move to withdraw vehicles

Drivers of LagRide, a government-backed ride-hailing platform, have resolved to stage a protest following a threat by the operators to involve the Lagos State Task Force in arresting them over alleged misconduct.

LagRide, which was previously a partnership between the Lagos State government and Zenolynk Technology Ltd - the original developer of the platform’s app - is now controlled by CIG Motors Co. Ltd, a Chinese state-owned automaker of GAC Motors.

CIG Motors recently took over the management of the ride-hailing company after the partnership between the Lagos Government and Zenolynk Technology Ltd ended earlier in March.

Following Zenolynk Technology’s exit, CIG Motors launched a new app for drivers as the old developer reportedly shut it down.

However, barely a month after the Chinese company assumed operational management of LAGRIDE, the company faced a looming crisis.


The crisis genesis

In a notice shared with Vanguard, LagRide management accused the drivers of discouraging riders from hailing via the LagRide app and promoting alternative ride-hailing services such as InDrive and Bolt at the expense of their platform.

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In the notice sent to the drivers on Tuesday, March 11, the management alleged that drivers are refusing trips without valid justification and that they collect cash payments instead of using the platform.
The management maintained that the driver’s conduct violated the company policies and constituted sabotage.

To ensure compliance, the LagRide management vowed to engage officials of the Lagos State Task Force and the regulators to monitor and arrest erring drivers.

“Non-compliant captains (drivers) will face strict disciplinary measures including possible arrest, impoundment of vehicles and legal actions,” the notice read.

However, LAGRIDE drivers alleged that the management’s allegations against them are due to the company’s failure to address the systemic challenges they face.

In a counter-statement signed by Comrade Iwindoye Steven, the Public Relations Officer (PRO) of Amalgamated Union of App-Based Transporters of Nigeria (AUATON), on behalf of the LagRide Captains Community, the drivers maintained that the company’s failure to address the issues culminated in operational difficulties, frustration, and income loss for some of them.

AUATON also warned LagRide management against the threat of arresting its members, saying such a move would escalate the brewing crisis.

“We took exception to the threats of disciplinary measures, legal action, and involvement of the Lagos State Taskforce. Such measures only serve to escalate tensions between management and captains, rather than addressing the root causes of the issues,” the council warned.

Highlighting the problems with CIG Motors’ new app, a driver who spoke to Vanguard on condition of anonymity said it is not user-friendly and drains phone batteries.

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“Aside the fact that it’s not user-friendly, the app actually kills our phone. It drains battery seriously and consumes data. And aside that, we find it difficult getting pickup and destination on the app. We have to start zooming, checking pin drops,” the driver said.

Drivers accuse LagRide of extortion

In response to the management’s allegations against them, the driver said they resorted to taking cash and negotiating trips offline with riders because the company turned off the cash option, a ploy to force them to remit their income to the app and get paid once a week.

According to him, the drivers rejected this arrangement because, despite the myriad of levies CIG charges, the company is not responsible for the maintenance or repair of their vehicles.

According to him, some of the levies include insurance, communication, dashcam and phone levies.

“The thing that broke the camel’s back is that they wanted us to be remitting our income to them. So they turn off the cash option on the app and turn on the only wallet option. When that wallet option is turned on immediately after a trip ends, it shows the rider an account, which is the company’s account.

“So, this left us with just three options one side. I will call the rider to negotiate the trip offline which is not really cool for us and the company as well, or we run the trip and we tell the rider to pay into our own account,” the driver said.

He said many of them have not been working for three weeks, adding that they resolved to operate offline until the issues they raised about the app are fixed.

Drivers to take protest to Alausa

Since the Lagos State Government, through its IBILE Holdings, is CIG Motors’ investment partner, LagRide drivers have decided to take protests to the state government secretariat at Alausa to express their grievances about the platform’s management and CIG Motors’ move to take charge of their earnings.

In its statement, AUATON had warned that the government’s failure to address the drivers’ concerns “may lead to protest and strike action, including shutting down LagRide in protest.”

 

Crisis hits LagRide, drivers threaten protest as operators move to withdraw vehicles

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