The Lagos State government has officially announced its plans to launch a new ride-hailing service dubbed “Lagos Ride,” which will introduce a fleet of 1,000 Sports Utility Vehicles (SUVs). This initiative stems from a strategic partnership with the Chinese auto manufacturer, CIG Motors Co. Limited, which is also set to establish a vehicle assembly plant within the state. This development follows recent efforts by the Lagos government to regulate and, in some cases, crack down on existing ride-hailing startups like Uber and Bolt, sparking speculation about the government’s intent to enter the lucrative e-hailing market directly.

According to official disclosures, the Lagos Ride scheme will see the deployment of 1,000 SUVs over the next six months. If timelines hold, these vehicles could be operational on Lagos roads by September 2021. The government positions Lagos Ride as a key social intervention program, aimed at creating job opportunities, alleviating poverty, and empowering residents in underserved communities. Furthermore, the scheme is intended to contribute to the creation of a “seamless multi-modal transportation system” across the state.

The operational model for the Lagos Ride e-hailing service will be a hire purchase system. The vehicles will initially be owned by the government, and drivers are expected to be engaged as employees until they complete payments for their assigned vehicles, rather than operating as independent contractors. The Cooperative Society within the Ministry of Wealth Creation and Employment will oversee the four-year lease period for the new SUVs. During this time, drivers will be required to make monthly instalment payments, and the government is expected to levy a commission on drivers' total monthly earnings. Upon the completion of the four-year period, drivers will have the option to finalize an outright purchase of their vehicles.

Despite describing Lagos Ride as an e-hailing taxi scheme, there is currently no indication regarding the development or presence of a dedicated mobile or web application for the service. Should an app be introduced, questions arise whether it will be universally accessible to all interested drivers, akin to Uber and Bolt, or if its access will be restricted solely to those drivers selected by the government for vehicle leases. The latter scenario could potentially limit participation to only state-selected individuals.

The impending launch of Lagos Ride has elicited a range of concerns from existing Uber and Bolt driver-partners, who have voiced apprehension regarding potential issues such as regulation, transparency, and unfair competition. Drivers are particularly wary of the possibility of stringent new regulations, drawing parallels to how similar measures led to the exit of bike-hailing startups like Max, ORide, and Gokada. One Bolt driver, speaking on behalf of his colleagues, expressed fears that Vehicle Inspection Officers (VIO) and the Lagos State Traffic Management Authority (LASTMA) might begin targeting e-hailing drivers who haven't completed all necessary vehicle documentation. He also noted that the government has mandated additional documents costing N17,000, which include the auto hackney permit (N15,000) and Lagos State Drivers’ Institute (LASDRI) certification (N2,000), requirements not yet made compulsory by Uber or Bolt.

Comrade Ibrahim Ayoade, President of the National Union of Professional App-based Workers (NUPA-BW), echoed these regulatory concerns. He articulated fears that new government policies might favor Lagos Ride, potentially marginalizing or frustrating Uber/Bolt drivers out of the market. Ayoade also raised questions about the transparency of the driver onboarding process for Lagos Ride, suggesting that political interference could compromise its fairness. Citing past government schemes like the Fashola administration’s yellow cab initiative, he warned against mismanagement and urged the government to consult with the union before proceeding with the Lagos Ride scheme, emphasizing the need for comprehensive understanding of the gig economy beyond financial gains.

While acknowledging potential benefits, such as an increase in available vehicles for e-hailing and increased competition that could prompt Uber/Bolt to improve support for their partners, many drivers, including Ayoade, have questioned the scheme's sustainability. There are significant doubts about the durability of the Chinese SUVs on Lagos roads, with concerns that high vehicle maintenance costs and fuel consumption could lead to elevated fares. This, in turn, could reduce the service’s appeal to riders, making it less affordable compared to existing services like Uber and Bolt. The ultimate impact and trajectory of the Lagos Ride scheme remain to be seen as it progresses.