Gokada Lays Off Most Of Their Employees After The Ban Of Okada In Lagos
GoKada, 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.
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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.