• Monday, June 24, 2024
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Sanwo-Olu unveils Lagos taxi scheme with 1,000 new cars

Analysing Lag Ride as a state-owned enterprise in the ride hailing market

A modernised taxi scheme has taken off in Lagos State, with the rollout of the first batch of 1,000 brand-new GAC-branded automobiles by Governor Babajide Sanwo-Olu, on Wednesday.

The ride-hailing taxi initiative, codenamed “LAG RIDE” and being operated on a lease-to-own basis is a component of the state government’s multi-modal transportation blueprint being executed under the Traffic Management and Transportation pillar of the THEMES agenda of the Sanwo-Olu administration.

The initiative is a partnership between Lagos State-owned IBILE Holding Limited and CIG Motors Company Limited, with the objective to provide clean and reliable means of taxis movement across the metropolis at affordable cost, using brand-new vehicles.

Operators are required to pay about N1.9 million down payment. The sum covers the 20 percent equity of cost of vehicle, registration and insurance. Each car being used in the scheme comes with technology-enabled security features that monitor every journey undertaken.

Sanwo-Olu, while launching the scheme at Lagos House, Ikeja, said the state had moved another step forward in its drive to develop an efficient transportation model in tune with modernity and comfort.

Read also: Five things to know about Lagos Ride

He told the audience at the launch that the scheme was not to run existing hailing ride operators out of the business but to offer safer alternatives and clear the roads of rickety cars being used for taxi business.

According to the governor, the initiative provides opportunities to the operators to become owners of the vehicles within three to four years period.

“The need to provide better, dignifying and more rewarding means of transportation and livelihood for unemployed and underemployed population gave birth to the new ‘Lagos State Taxi Scheme’, which will be operated on a lease-to-own basis. Under this arrangement, a beneficiary will be provided a brand-new car which will become the driver’s property after completion of the payment of the vehicle’s subsidised cost.

“This taxi scheme will complement the various bus services which are making a significant impact in the lives of our people; the water transport service, which is recording unprecedented patronage, as well as the Blue and Red Line Rail services which are on course to commence commercial operations between the last quarter of this year and the first quarter of 2023.”

Also speaking, Frederic Oladeinde, the commissioners for transportation, described the scheme as “another milestone achievement”, noting that the initiative had joined an array of other innovative solutions initiated in the transport sector, which were targeted at redefining public transportation.

To make the rides affordable, the commissioner said the technology on which the scheme is operated had made ride-sharing possible for passengers, who would agree to share ride and transit costs.

Chairman of CIG Motors in Nigeria, Diana Chang, said the roadmap for the urbanisation of the transportation system in Lagos started in November 2019 when the governor and members of his cabinet visited the Republic of China for bilateral partnership. The launch, she said, is the glorious end of the partnership sealed with Chinese investors.