The first e-hailing mobile app for bikes in Lagos Nigeria, Gokada, has closed down operations today. This comes at the heals of increased competition in the e-hailing business and some disturbing insinuations in government circles.
The closure, however, will be temporary as the company would be taking a short break to correct the problems that could result to poor customer experience. The shutdown which begins today will end on August 26, 2019. The CEO of the company, Fahim Saleh, said the temporary exit from the market would enable the company to:
- provide new bikes;
- retrain Gokada riders;
- provide improved safety measures; and
- ensure all riders are happy by maintaining their bikes for free, opening a drivers’ club, and expanding our health benefits.
In a related development, Mr Joe Igbokwe, an in coming commissioner with the Lagos State government has discredited e-hailing start-ups in Lagos, claiming they undermine the Lagos State mega city transportation initiatives.
“Instead of partnering with govt on BRT, you invested “5.3 million dollars” in okada business and expect that Lagos state will allow you jeopardise its muliti-billion naira mass transit investments.
Call it ‘bike-hailing start up’ or whatever, okada na okada… it is not sustainable in a city of high density population Lagos.” He had said in a Facebook post.