Gokada has announced it will be shutting down its operations temporarily in Nigeria today, August 14, 2019.
The shutdown was announced by the Chief Executive Officer, Fahim Saleh.
Saleh revealed this in a note he wrote and published on a news website on Tuesday, August 13, 2019.
The decision to exit the market immediately was compelled by his personal experience on one of the company’s bikes in Victoria Island, Lagos.
The motorbike hailing market is still relatively new but it’s an emerging market that promises so much revenue potential to investors. Its entry barrier is, however, high and costly to operate.
While most businesses shut down their operations in Nigeria due to the country’s business environment, Saleh’s reasons have nothing to do with Nigeria’s hostile territory but self-development to enable the company to compete better in the emerging market.
According to Saleh, he hailed a Gokada bike from Victoria Island to Mainland bridge, and his experience was unpleasant because of two major reasons which include rider’s failure to get to his pickup point within allotted time and rider’s struggle to navigate the road due to a fault developed by Gokada’s app.
The closure, however, will be temporary as the company would be taking a short break to correct the problems that could result to poor customer experience. The shutdown which begins today will end on August 26, 2019.