Techpoint can confirm that Lagos-based motorcycle-hailing startup, Gokada has laid off most of its workforce.

Launched in January 2018, the startup was founded by Fahim Saleh to solve Nigeria’s largest city traffic problems. Since then, Gokada has gone on to raise a total of $5.6 million from two rounds and claims to have completed more than a million rides.

However, amidst the fundraising and fanfare, there has always been a cloud of bad blood and uncertainty.

A year and a few months later after launch, it was reported that Deji Oduntan stepped down from his CEO role as co-founder Fahim Saleh took over. At the time, there were allegations of mismanagement and misconduct at the startup which Saleh denied during an interview with Techpoint.

In August 2019, three months after raising $5.3 million series A and announcing Ayodeji Adewunmi as co-CEO, Saleh revealed plans via a Medium post to suspend all Gokada operations for two weeks. This was due to the unpleasant experience he encountered when trying to use the motorcycle-hailing service some days before.

Consequently, Saleh said the company would undergo an overhaul to ensure that drivers were retrained as well as launch brand new bikes and new Bluetooth helmets for Lagosians. Keeping to its promise, Gokada did just that.

However, there are unconfirmed reports that this new change in operations might have cost the two-year old startup a lot.

According to an anonymous source close to the matter;

“When Fahim got the money, he used a bulk of it to buy over 2,000 bikes where each bike cost about $1500 without factoring the cost of helmet, trackers, Bluetooth, shipping and custom fees. Multiplied by 2,000 bikes, that’s a bulk of the fundraising. Having spent a bulk of the fundraising, they don’t have enough funds in the bank.

“Secondly, they couldn’t onboard enough riders and because of that, they were already in a financial crisis by December as they struggled to pay salary. Then they secretly laid off some staff. But immediately they heard the news of the okada ban, they sacked close to 70% of the staff as a cover-up of their previous sackings.”

The source also claims that Adewunmi, the co-CEO hired in May 2019, left the company last month.

In addition to this, another source claims that Gokada laid off most of its staff two days after the announcement of the ban.

Just a week ago, on the 27th of January, the Lagos state government announced the ban of all forms of motorcycles and tricycles in major parts of Lagos. Motorcycle-hailing startups like Gokada and MAX Okada were not exempt.

This caused the startups to engage in a protest against the new regulation. Also, CEO, Saleh released a video addressing the ban, so it comes as a surprise if the green-branded motorcycle-hailing service has taken this course of action.

Gokada CEO, Fahim Saleh has confirmed the layoffs, via a tweet to Techpoint reporter, Tage Kene-Okafor.

"While much of your report is accurate,” the tweet reads, “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."

Source: https://techpoint.africa/2020/02/03/gokada-lays-off-staff/

I knew that the ban was going to have far-reaching consequences. The masses will bear the brunt in one way or the other.

I insist that there is no excuse for banning Keke, okada I understand.



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Send a pm.

Just unfortunate. Why did Sanwo-Olu endorse them in the first place?

The governor should legalize only this Gokada

More unemployed to d growing list of unemployed ppl in d country and yet d govt expect ppl to believe dey have gud intentions.. What happens to partnering with dem or finding a way to absolve dem into d Govt's plan considering dey already have a system dat works

Opay was the beginning of Gokada's problems. Amazingly opay would be least affected.

Lalasticlala

EzeNdiAra:
The governor should legalize only this Gokada

Gokada and Max are actually ok. I have never used one of those ride hail services, but when needed it would be Gokada and max.

Chaii.
Investors don suffer

This will have no effect

Too bad

This is not a good time to loose one's job

Indirectly paying for Oride sins !!

So unfortunate

Ok

Employee layoff was never mentioned in that tweet up there.
Unless you're referring to another tweet not shown on this thread.

Nevertheless,

Convert those bike to dispatch bike and sell them to logistic companies.

You can as well partner with them

The casualties have started rolling in!

Ok
Poor getting poorer
Rich keep getting richer
With the way the Country is going
If you want to have financial freedom
Build multiple stream of income
Invest in Online Business
Don't depend on salary work because the unstable policies of government might lead to job loss.(Not our prayer though)

Last embrace Real Estate Consultancy business and make over 15% commission per property you sucessfully sold.

O'Trek, O'Jug, O'Run, O'Suffer

I feel for people without cars.

It's a sin to be poor in this country, and its a greater sin to remain poor after you're born poor.

May we never be broke for too long

It has started.

Incentive government, always proactive when it comes to making the life of the masses hell.

Trailers and trucks has being causing death and mayhem in Lagos, but no one banned them, because those trucks belong to the Dangotes and co.

I felt pity for lagosians yesterday. See people trekking in Ikeja yesterday like no man's business.

Even bus fares have skyrocket.

With the motor-bike ban, It was bound to happen.

TellMeTheTruth:

Adam00:
Ok

Topmaike007:
It will

chimhigher:
..

majamajic:
Indirectly paying for Oride sins !!

So unfortunate

author=TellMeTheTruth post=86365382]

pwansunriseteam:
Ok

Nawa

Nice one

see waitin bad leadership has caused

Reason why setting up a business in a shithole, is very unpredictable.........

Damnnnnn niggarrr

Is about to get worse

GidifeedNews:


Source: https://techpoint.africa/2020/02/03/gokada-lays-off-staff/

joblessness leads to more crimes

It has started already....hope Sanwo will revert his decision at least to accommodate the branded bikes and keke.

When things fall apart! #smh

..

It will not be better for the person that adviced Sanwolu on this....

Rotimi Ameaechi and Chris Ngige should pls interfe in this issues because poverty is not on the rise now..

Thank God I have not gotten the tricycle for someone I would have been on the loss now

I prefer Gokada over OPay anytime. OPay is crap, trash and nonsense.