AUATON faults Lagride for ₦450k upfront rental, ₦50k driver training fee

The Amalgamated Union of App-based Transporters of Nigeria (AUATON) has accused the Lagos-backed e-mobility company, Lagride, of putting drivers (captains) under immense financial pressure. The union disclosed this in a statement by its PRO, Steven Iwindoye.

According to the union, the e-mobility company extorts its drivers mainly through a ₦50,000 non-refundable driver training fee and a weekly ₦450,000 upfront rental fee.

Condemning the worsening socio-economic conditions confronting LagRide captains in Lagos, the union described the operational realities under the management of CIG Motors, led by its Chief Executive Officer, Diana Chen, as dire.

It added that, alongside the cost-of-living crisis in Lagos state, drivers now face compounded economic pressures arising from both external economic realities and internal operational policies.

“AUATON has received and verified multiple reports highlighting stringent and financially burdensome conditions imposed on drivers within the LagRide system. First is an upfront weekly rental payment of ₦450,000 prior to vehicle allocation, with no provision for refund under any circumstances,” the union’s statement reads.

Chief Diana Chen, Lagride Chairman

Read also: Is LagRide’s drive-to-own option a fact or a scheme to lure desperate drivers?

The AUATON also condemned a mandatory non-refundable training fee of ₦50,000 for prospective drivers. It also complained about the fuel allocation arrangement; the union stated that the ₦25,000 daily fuel allocation is insufficient, given traffic and operational demands.

The union also called out Lagride’s restriction of drivers to its app. They argued that this limits their ability to diversify income streams. It then decried the low public awareness of the platform, resulting from insufficient advertising and weak platform rollout.

This led to poor ride requests on the platform.

The union also expressed deep concerns about alleged unilateral alteration of agreed terms and conditions by the company, perceived breach of contractual agreements and termination of services without adequate compensation or structured transition.

“The prevailing structure reflects a significant imbalance in risk distribution, placing a disproportionate burden on drivers. There is a growing sentiment that the system mirrors a form of modern-day exploitation enabled by technology, where digital control mechanisms are used without corresponding protections for workers,” the union said.

AUATON

As such, the union is demanding a review of onboarding and financial requirements, transparent and fair payment structures, the immediate activation and verification of driver insurance coverage, improved marketing and rider acquisition strategies, the introduction of competitive incentives, and strengthened welfare and support systems.

Lagride says financial demands are operational decisions

Asked about the development, A Lagride spokesperson explained to Technext that the financial obligations are not meant to burden drivers but are purely operational decisions based on experience.

On the ₦50,000 training fee, the company described it as a structured professional training investment that covers essential learning and onboarding components required for safe and professional operations.

“The training includes operational defensive driving and safety protocols, customer service standards, technology and platform usage training, and vehicle handling and maintenance awareness,” the company said.

It also disclosed that the fee also covers driver background checks, certification processing, and the provision of uniforms, all of which are necessary to maintain safety, professionalism, and standardisation across the platform.

It further said it has remained transparent about the training requirements and associated costs from the very beginning of engagement, ensuring that all prospective Captains clearly understand what the fee covers and the value it delivers.

LagRide Electric Cars. Credit: Technext/Ejike Kanife

On the 450,000 upfront weekly rental fee, the company described it as “a necessary response to earlier operational realities experienced when stricter controls were not in place.” The company said it historically waived the security deposit and simplified the guarantor process to reduce entry barriers.

Unfortunately, some drivers accumulated substantial unpaid rental obligations and attempted to abscond with their vehicles.

“In certain cases, tracking systems identified vehicles being moved outside operational zones, while some Captains conducted offline trips outside the platform, creating accountability and safety concerns when passengers later contacted LAGRIDE regarding trips that were not recorded on the system,” Lagride said.

The current rental structure was, therefore, put in place to checkmate this.

On the fuel allocation programme, the Lagride spokesperson clarified that it was indeed ₦125,000 per week and it is merely a subsidy.

“Lagride subsidises fuel for petrol vehicles and covers electricity costs for electric vehicles in full, alongside structured onboarding, regular retraining, Driver Management support, and millions spent monthly on marketing to sustain rider demand. When rising fuel and electricity costs put pressure on the sector in recent months, LAGRIDE increased its marketing investment to stabilise passenger demand, and Captains who committed saw their earnings stabilise as a result,” the company said.

See also: Lagride secures $100m financing from UBA to scale its drive-to-own business