The Lagos State Government-backed e-hailing platform, Lagride has secured a $100 million financing facility from United Bank for Africa (UBA) to expand its Drive-To-Own programme.
According to a statement from the company, the funding is structured to support the transition of about 3,500 drivers from daily rental arrangements into longer-term asset ownership and small business operations within the city’s transportation sector.
The financing reflects growing interest from financial institutions in structured mobility platforms.
What they are saying
Speaking on the landmark funding, Lagride Chairman, Chief Diana Chen, said the ultimate goal of the Drive To Own programme is not to keep drivers behind the wheel indefinitely, but to move them up the economic value chain.
She explained that Lagride is intentionally designed to help drivers evolve from operators into owners, and ultimately into investors and partners managing multiple vehicles and teams of people.
“Lagride was created to give Lagos a modern, disciplined and technology-driven mobility system while ensuring that drivers are not left behind.”
She added that the goal is for drivers, whom they call Captains, to become business owners, fleet partners and mobility investors, not just drivers.
“This 100 million dollar partnership with United Bank for Africa moves thousands of captains closer to owning productive assets, managing multiple cars and building stronger financial futures,” she said.
- Also speaking on the partnership, Group Managing Director and CEO of UBA, Oliver Alawuba, said the bank considers the mobility sector critical to inclusive economic growth.
- According to him, Lagride represents the kind of transformational, well-governed and data-backed initiative that UBA exists to support across Africa.
More insights
Lagride’s Drive-To-Own programme is designed to move drivers from short-term rental models into gradual vehicle ownership based on performance and repayment history.
Under the programme, drivers who meet predefined criteria are eligible to transition from daily or weekly rental arrangements into structured ownership plans tied to consistent earnings and repayment schedules.
According to the company, the new funding facility will be deployed to increase the number of vehicles available under this model, enabling more drivers to participate without relying on informal lending or high-cost vehicle leases.
- By anchoring ownership to measurable performance indicators, the programme aims to reduce default risks that have historically limited bank financing for individual drivers.
- The Lagride-UBA facility illustrates a model in which technology platforms act as intermediaries between drivers and banks, aggregating data and enforcing operational standards that individual operators typically cannot provide on their own.
- If sustained, such arrangements could gradually expand the pool of bankable transport operators and introduce greater structure into urban mobility financing.
What you should know
- Lagride recently expanded its fleet of vehicles with 100 electric vehicles in a move targeted at capturing at least 70% of the e-hailing market in Lagos.
- According to the company, the 100 EVs were part of the broader plans to roll out over 3,000 EVs over the next three years to support the state’s shift to cleaner and smarter mobility.
- With this, the company is also hoping to snatch market share from competitors, which include Uber, Bolt, and InDrive.
- The latest funding comes as a boost to the financial muscle of Lagride to actualize this dream.
