LagRide counts losses to nationwide protest

LagRide, the Lagos government-backed ride-hailing platform, could lose N10 million daily after drivers were asked to stay off the roads due to a nationwide protest.

According to empirical summations, If the strike lasts ten days as planned, the ride-hailing company could lose N94.69 million.

LagRide told its 1,000 drivers during the week to stay off the read and suspend their daily repayments during the strike. Drivers pay ₦700,000 ($791) for brand-new GAC vehicles and spread the rest of the payment for four years through daily payments of ₦10,522.

“Any captain found driving or making offline trips or impersonating tomorrow will have their vehicle repossessed without options of settlement,” the company said in a statement that only LagRide directed its drivers to stay off the road. Its competitors like Bolt, Indrive and Uber did not. However, officials of the e-hailing drivers union instructed drivers to stay home for fear of attacks.

“We did not stop operations, we only advised safety,” national treasurer of App-Based Transporters of Nigeria (AUATON), Jolaiya Moses said in a text message. “We encouraged everyone to stay safe, if possible stay at home. It’s a volatile period.”

The suspension of LagRide driver’s accounts will significantly impact the drivers’ ability to earn money to cater to their needs during the protest period. In July 2024, drivers’ daily asset repayments were increased 17% from ₦8,955 ($5.72) to ₦10,522 ($6.72) due to accelerating inflation and macroeconomic headwinds.

The inability to make daily repayments could, in turn, result in losses for the government and the private investors should the protest extend