Gokada, a ride-hailing company in Lagos, has transformed its business model from ride-hailing services to logistics and package delivery services. The transformation came in the face of the recent ban placed on motorcycles (Okada) in Lagos state.
As the ban on motorcycles in Lagos enters the third week, its impact has continued to take its toll on both commuters, corporate bodies, and ride-hailing startups.
Gokada has now changed its initial on-demand ride-hailing service business to that of package delivery. The move is in a bid to keep the startup afloat for a longer time, rather than shutting down.
See Also: Government Bans Commercial Motorcycles and Tricycle Activities in Lagos Nigeria
The metamorphosis will make Gokada riders carry a dark square-shaped bag with ‘GChop’ inscribed on it. These bags will be used for the delivery of parcels, letters as well as logistics services.
The CEO Gokada, Fahim Saleh, in an interview with TechNext, noted that the name GChop was birthed from its upcoming vertical food business. The name also resonates with the food delivery services it will offer.
Fahim further clarified its relationship with Jumia Foods. He noted that the startup is in a business agreement with Jumia. As part of the deal, Jumia will deliver its food packages through Gokada riders. In return for this service, Jumia will pay Gokada for the service, and Gokada will then pay the drivers. This will provide a source of income for both drivers and the ride-hailing startup.
It is pertinent to note that the metamorphosis of Gokada into a logistics business and its renewed interest in waterway transportation will bring forth favorable competition in the logistics sector.
