Grace Ashiru
LagRide, a government-supported ride-hailing platform, is set to lead the adoption of electric vehicles in 2025, according to a source familiar with the development. The company intends to introduce electric cars provided by CIG Motors Co. Ltd., the Nigerian representative of Chinese state-owned automaker GAC Motors.
This move would establish LagRide as Nigeria’s first ride-hailing service to integrate electric vehicles, aligning with Governor Babajide Sanwo-Olu’s vision to transition 50% of Lagos State’s public transportation to electric power by 2030.
This development comes after a June 2024 agreement between LagRide and CIG Motors to procure 5,000 new vehicles, increasing the platform’s fleet to 6,000. A source close to CIG Motors revealed that electric cars are already being branded for LagRide in preparation for their 2025 rollout.
LagRide has not yet provided a response to inquiries regarding this development.
The electric vehicles are set to be introduced under the Wuling brand, a subsidiary of GAC Motors. Wuling Motors Holding Limited produces two electric car models, the Yep and the Bingo, both designed as four-door, five-seater vehicles. These models are priced at approximately ₦36 million ($22,787), making them notably more affordable than Xiaomi’s recently launched SU7 electric car, which costs $30,408. Xiaomi had aimed to compete with the Tesla Model 3 by offering a lower-priced sport utility vehicle (SUV).
Although the ₦36 million price tag is competitive compared to some new Toyota models in Nigeria, it marks a substantial increase for drivers enrolled in LagRide’s 2022 vehicle financing scheme, which required a payment of ₦10 million ($6,224) over four years.
Affordability will be a major factor in the successful rollout of electric vehicles next year. In the meantime, LagRide drivers are advocating for reductions in commissions and daily asset repayments. In July 2024, daily asset repayments were raised by 17%, from ₦8,955 ($5.57) to ₦10,522 ($6.55), in response to rising inflation and economic challenges.
Possible Implications
Analysts predict that two-wheelers will lead the charge in electric vehicle adoption across Sub-Saharan Africa by 2040. Companies like Ampersand in Rwanda and Spiro in Nigeria have showcased how integrating energy infrastructure, such as charging stations, with mobility services like electric motorbikes can revolutionize logistics and transport. LagRide’s introduction of four-wheeled electric vehicles is ahead of this trend and could shape a new future for commuting, benefiting both drivers and ride-hailing businesses. A well-structured loan system, particularly in Nigeria, could further boost user adoption.
