OPay launched OBus in April 2019. Barely 7 months after the launch in Lagos Nigeria, OPay has withdrawn OBus, its public bus-hailing operation.
Techpoint reported that the suspension was due to the ‘unsustainable business model’ OBus operates in the country. It also disclosed that OBus’ operation was thwarted by interference from officials of the National Union of Road Transport Workers (NURTW), popularly known as Agberos (or area boys).
To curtail the rampant harassment, OBus included security operators to escort their buses for public bus-hailing. Some of these area boys go as far as preventing OBuses from picking passengers at bus stations along their routes.
See Also: Opay Faces Backlash over Unscrupulous Transfer Charges
Since entrance into the market, OBus has become popular on four routes within Lagos State. It looked to disrupt the public transport system by providing a faster and secure way to commute within the city. To achieve this, OBus partnered with third-party bus owners, procured more buses, recruited staff and accumulated operational cost.
OPay has now taught it wise to suspend its bus services and re-strategize the business model in Lagos. It still operates other transport options such as ORide, OTrike, OFood, and OWealth across the country.
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