For many Lagosians who go through the daily stress of the traffic gridlock in most parts of the city, the option of hailing a commercial motorcycle – or okada as it is called in Nigeria, on their mobile phone in the past one year has provided some form of relief. Last week, one of the companies behind that solution said it is exploring other forms of transportation which it believes will significantly reduce traffic in the state and other parts of Nigeria.
Gokada, a technology company that has brought a corporate touch and automation to okada business in Nigeria clocked one year on Tuesday, 26 February, 2019.
For Deji Oduntan, who started the company with 20 motorcycles in a one room apartment at Yaba, the anniversary was a time to reflect and project its dreams into the future.
The company have gained prominence with offering on-demand motorcycle taxi app and in doing so it has carved out a sizeable share of the $1 billion okada ride-hailing market in Nigeria.
For instance, the number of okada, in Gokada’s fleet has since grown from 20 to about 1,000 and completed 5,000 rides across Lagos’ mainland each day. Its customer base has also surged to over 100,000 which sort of create pressure points for the company. But Oduntan told BusinessDay that it is not only its on-demand ride service that will take it to its desired destination.
The company has many ambitions. At its new headquarters on Tinubu Close, Ilupeju, the company has commissioned a good artist to highlight some of its future projects on a white wall. The projects include ferries, bicycle, and commercial buses amongst others.
Oduntan believes that for a city like Lagos to grow to its full potential, businesses and people should be able to move about freely with comfort, quickly and safely. An intermodal transport system will only ensure that the time millions of people waste in traffic is drastically reduced.
“We don’t see Gokada as just a motorcycle hailing company,” says Oduntan. “We are investing in different means of modern transportation; the idea is to get people to their destinations as fast as possible and in a safe manner. We are rightly positioned to offer multiple services.”
Among the many things the new headquarter has been scheduled for, one of the most important is a training school for drivers. This became expedient giving the surge in demand for Gokada’s services by customers and different feedback the company received.
It is also part of a top of the list agenda of building Gokada into a recognisable brand. A courteous driver makes a happy and a loyal customer which rubs off on the brand.
“We understand the reason okada was banned in Lagos,” says Oduntan, recalling a period in 2017 when the Lagos State government placed a ban on drivers from plying about 520 roads including major highways and bridges in the commercial city. The government had cited heightened security concerns and potential breakdown of law and order.
Gokada’s model of verifying the drivers, providing and mandating riders to use helmets and pioneering hair nets worn under the helmets have since changed the narrative of the government and many Lagosians. So far the company has recorded 0.01 accident rate.
Gokada hopes that its testimonial will also break down the walls of resistance put up by gated estates. Many estates in Lagos State do not allow okada drivers within their environs. The company is in talks with some estate administrators to consider ways of leveraging Gokada’s services for residents within those estates. It currently services one of the big estates on the Lagos mainland.
The new school however can only take up to 500 drivers per session. It is a good start. Nevertheless, it does not fully address the growing demand the company is now saddled with. There are also requests coming from states outside Lagos. Oduntan says it is an opportunity for the company to start considering investments in other modes of transportation.
Providing ferries on Lagos waterways appears to be the next big project on the list, but Oduntan says there is the government side that needs to be addressed. The Lagos State government has made several promises to provide water infrastructure that will enable commercial water transport companies do their business with peace of mind.
Gokada has instead set its sights on the logistics market for the meantime.
“We need to make good use of our motorcycle assets,” he says.
