Motorbike-hailing service, GoKada said it is pivoting into the delivery business
With the recent ban, all vehicles irrespective of their engine capacities are now banned from major local government and council development areas across the state. Courier services and dispatch riders operating above 200cc are not affected.
During Babatunde Fashola’s regime as the Governor of Lagos State, he introduced the 2012 Lagos State Road Traffic Law. Motorcycles or tricycles with engine capacities below 200cc were restricted from major expressways. This also applied to courier services.
For this reason, GoKada is venturing into the delivery space and will be involved in “on-demand and batched deliveries for eCommerce partners.”
The company has also laid off its workers in the replacement of experienced dispatch riders. Gokada spent most of its funding on acquiring new bikes after two weeks of pause last year August, which led to the company’s final crisis. The company due to the crisis could not pay its workers and had to lay them off.
Confirming the layoffs, Founder and CEO of Gokada, Fahim Saleh in a tweet said “while much of your report is accurate, we still have money in the bank and are pivoting towards deliveries while this transport ban gets sorted. We were due to make a profit in January before the ban was announced.”