The nonlinear evolution of collisionless drift instabilities in a shear-free magnetic field has been studied by means of gyrokinetic particle simulation as well as numerical integration of model mode-coupling equations. The purpose of the investigation is to identify relevant nonlinear mechanisms responsible for the steady-state drift wave fluctuations. It is found that the saturation of the instability is mainly caused by the nonlinear E x B convection of the resonant electrons and their associated velocity space nonlinearity. The latter also induces energy exchange between the competing modes, which, in turn, gives rise to enhanced diffusion. The nonlinear E x B convection of the ions, which contributes to the nonlinear frequency shift, is also an important ingredient for the saturation