According to regulatory papers, Gokada, a well-known brand in Lagos’ ride-hailing and last-mile delivery scenes, has had a difficult time and filed for Chapter 11 bankruptcy protection in Delaware on October 18, 2024.
In essence, they are requesting that a court assist them in resolving their obligations so that they can continue operating their business while determining how to make their payments. For individuals or companies who owe money but lack legal assurances, there is terrible news (unsecured creditors). They may not receive any payment at all, according to the filing, since there is no money set aside for them.
In essence, Gokada is attempting to survive, but not all of its debtors will be satisfied. This is the backstory: In 2017, Gokada’s journey began with co-founders Deji Oduntan and Fahim Saleh. At first, it was all about ride-hailing motorcycles, but in 2020, things changed.
The Lagos State government effectively shut down Gokada’s main business overnight by outlawing okadas, or commercial motorcycles, in strategic city districts. The business had to fire employees and quickly come up with a new strategy, focussing on food delivery and logistics.
BrandSpur national news stories report that however, this was not Gokada’s first problem. To improve service quality and retrain their pilots, they temporarily halted operations in 2019.
However, the Okada ban was a severe setback. With new products like G-Boat (water transportation), GoMedic (medical transportation), and collaborations with websites like Jumia Food, they attempted to recover. Sadly, the endeavour did not yield the desired results, and profitability remained unattainable.
Also read: https://brandspurng.com/2025/01/12/first-bank-build-grounds-for-expansion-in-sub-saharan-africa/
When CEO Saleh passed away tragically in July 2020, things became even worse. His passing left a leadership void during a pivotal period of restructuring, which made it even more difficult for the business to get back on track. Despite its best efforts, Gokada was unable to establish itself in the market for urban delivery and mobility.
Not only did Gokada face difficulties, but the industry as a whole was rocked by the impact of the Okada ban. Similar difficulties were encountered by rivals like MAX.ng and ORide, who also relied on motorbike taxis, forcing them to switch to delivery and logistics to survive.
In the meantime, Lagos commuters lost a dependable means of transportation, which made city movement even more chaotic. All eyes are on the company as it navigates bankruptcy proceedings to see if it can come out stronger or end up as a footnote in Nigeria’s history of urban transport.
