Lagos denies taking over e-hailing biz with new scheme

The commissioner for transportation in Lagos State, Dr Frederic Oladehinde, has denied claims that the state is taking over the online ride hailing business with the new e-hailing taxi scheme initiated.

In a clarification, he told Daily Trust that the scheme was rolled out after the approval of IBILE Holding Limited’s proposal at the state’s Executive Council meeting on August 31, 2020.

He said, “The government is creating an enabling environment for its citizens to participate in the taxi business. The big thing for the government is the setting up of the assembly plant, which would create jobs for Lagosians. The operators under Lagos ride will be private and the government will focus on regulating the sector,’’ he said.

Governor Babajide Sanwo-Olu had last week unveiled the e-hailing taxi scheme to redefine road transportation in the state.

The governor signed a partnership agreement with CIG Motors Company Limited for the takeoff of the “Lagos Ride” scheme with a pilot fleet of 1,000 units of brand new Sport Utility Vehicles (SUVs).

Since the commissioning, tongues have been wagging, with some analysts arguing that the initiative could challenge the existing ride hailing schemes dominated by Uber and Taxify.

This further confirmed the speculation recently when the state government decided to regulate the operation of Uber and Taxify by imposing even more taxes and charges. There were speculations that the government might come up with a local e-hailing scheme and ultimately take over the market.

The governor said the scheme, which is expected to fully take off in six months, had been structured along a profitability model and designed to be self-sustaining for expansion and growth.