Motorcycle taxis are fast becoming a new transport trend, especially across Africa. It is not a surprise really when you consider the level of traffic in big cities like Lagos Nigeria. They do in fact provide a faster way to get around the big
Gokada, a ride-hailing startup in Lagos, just raised a $5.3 million Series A round to grow out its two-wheeled transport company. Thus far, Gokada has trained and on-boarded more than 1,000 motorcycles and their pilots on its app that connects commuters to moto-taxis.
Gokada secured this funding round from a couple of investors including; IC Global Partners, First Midwest Group, Adventure Capital and Rise Capital. Adding to its new funding round, Gokada made the founder of Jobberman, Ayodeji Adewunmi, its co-CEO.
According to the company’s founder, Saleh, Gokada aims to use some of the funding to provide a suite of services for its riders as incentives.
We’re going to start a Gokada club in each of the cities with a restaurant where drivers can relax, and we’ll experiment with a Gokada Shop, where drivers can get things they need on a regular basis, such as plantains, yams and rice.Saleh
As competition continues to deepen for two-wheeled transport, Gokada looks to focus on differentiating its platform. One way it does this is to charge its drivers a flat-fee of 3000 naira a day. The company is looking to generate a larger share of its revenue from building a commercial network around its rider community.
We don’t do anything with the fares. We want to create an Amazon Prime-type membership…and ecosystem around the driver where we’re going to provide them more and more services, such as motorcycle insurance, maintenance, personal life-insurance and micro-finance loans.
We’re trying to provide a network of great services for our drivers that makes them stick with us, and not necessarily see a reason to switch to other platforms.
Competition among those platforms is heating up, as global players enter Africa’s motorcycle taxi market and local startups raise VC and expand to new countries.
In Nigeria, Gokada faces a competitor in local startup MAX.ng, which offers mobile-based passenger and logistics delivery services.
For now, Gokada’s CEO says the company is focused on expanding across Nigeria instead of to other African countries. He asserts that Nigeria’s population of 190 million is a good enough market to grow in.