As against hostile business environment, the Chief Executive Officer of pioneer bike-hailing app company, Gokada, Mr Fahim Saleh has temporarily shut down operations to re strategize so as to enable the company compete better in the emerging market.
In a statement sent to users on Wednesday, Gokada said the compulsory break would last for 12 days beginning from Wednesday, August 14 to Sunday, August 25.
“We are dedicated to rewriting the ills the motorcycle taxis represent. This has nudged us to take this compulsory break of 12 days which begins Today, Wednesday, August 14th 2019 to the 25th August 2019,” it said.
“We will be back Monday, August 26th, with retrained drivers who are safety conscious, clean, courteous and are better with driving and navigation.
“Other features to expect include better traffic law-abiding pilots, brand new bikes amongst other things.
“We are deliberate in our commitment to revamping the narrative of transportation.”
In a statement on his Medium page, Fahim Saleh, Gokada CEO, said the company has failed in some ways despite succeeding in others.
“Increased competition, regulatory hurdles, and operational issues have forced us to make this decision. We thank all our loyal users and are truly sorry for this inconvenience,” he wrote.
“Gokada was started to change the perception of what the bike taxi could be in terms of safety, convenience, and transparency. In many ways, we’ve succeeded but we have also failed. We can only win by doing right to our customers and our pilots.”
However, stakeholders has cautioned Gokada on its move.
According to them, the market share of Gokada could be at risk of potential fallout, especially at a time like this when other bike-haling platforms are springing up and doing well.
This could no doubt have a large impact on the percentage on the sales of the bike hailing industry that accrue to Gokada, as their customers will jump ships to other platforms and remain there forgetting that the shutdown is only for a while.
Also investigations carried out by Business Remarks showed that despite being a new enterprise, the motorcycle taxi-hailing space has witnessed rapid expansion with the entry of Opay, Maxng and most especially O’Ride who has contributed greatly to the company’s woes.
It was revealed that 65% percentage of Gokada riders has switched over to join its competitor, alongside its top four executives employed with extra incentive.
About a year and some months after establishment, Gokada was able to raise funding of up to $5.3 million from Rise Capital, Adventure Capital, IC Global Partners and First MidWest Group.
The company, which started operations in February 2018, said it was already completing 5,000 rides a day during its one-year anniversary.
Also O’Ride poached some of its senior staffs namely; Gokada former Co Founder, Awolowo Moses, the Head of Driver support / Experience, Ebunoluwa Shipe, the Driver acquisition and road operations officer, Awe Oluwakayode and the Head Marketing, Akinwale Afolabi.