Lagos-based ride-hailing platform LagRide has unveiled plans to roll out 3,500 vehicles under a new Drive-to-Own programme backed by a $100 million financing facility from United Bank for Africa (UBA).
The initiative aims to help drivers transition from short-term rentals to long-term vehicle ownership — a move the company says could reshape urban mobility and financial inclusion in Nigeria’s commercial capital.
From Rental to Ownership
The first group of qualifying drivers, known as “captains,” recently received vehicle keys at a launch event in Lagos, formally kicking off the scheme.
According to LagRide’s Executive Director, Mildred Ekanem, eligibility for the programme is determined through a structured, data-driven process. Drivers must complete a 90-day rental and training phase, during which they are evaluated on ride completion rates, safety compliance, customer satisfaction, income performance and platform discipline.
The company says the structured assessment model generates measurable operational data, giving lenders confidence to finance vehicle ownership at scale.
“Standards unlock opportunity,” Ekanem noted, emphasizing that consistent performance allows drivers to move from daily income cycles toward asset accumulation.
$100 Million Financing Facility
UBA confirmed it plans to finance up to 3,500 vehicles under the partnership, positioning the programme as a practical model for expanding access to credit among gig-economy workers.
The financing facility carries a four-year tenor with interest structured on a reducing balance basis. Repayments are aligned with drivers’ projected earnings to improve affordability and reduce default risk.
UBA’s SME banking division described the model as an innovative blend of fintech, mobility, and structured lending — sectors attracting increasing investor interest across emerging markets.
Revenue Benchmarks and Demand Outlook
LagRide projects weekly revenue targets of approximately ₦375,000 for electric vehicles and ₦450,000 for SUVs. The company says these projections are based on operational data and unmet ride demand recorded in recent months due to limited fleet capacity.
Between September and January, LagRide reportedly struggled to meet full passenger demand — suggesting growth potential if the fleet expands as planned.
A Test Case for Gig-Economy Ownership Models
For participating drivers, the programme marks a shift from paying daily rental fees to building long-term equity in a vehicle. One of the first beneficiaries described the opportunity as transformative, noting that what once seemed financially out of reach became achievable through performance and consistency.
The pace of further vehicle rollouts will depend on how the first cohort performs under the scheme. LagRide says adherence to operational standards will determine how quickly it reaches its 3,500-vehicle target.
As African cities rapidly digitize transportation networks, structured ownership programmes like this could become a blueprint for gig-economy empowerment — blending private financing, data analytics, and mobility infrastructure in one scalable model.
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