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Nigeria’s Gokada raises $5.3M round for its motorcycle ride-hail biz

In many large cities across Africa, motorcycle taxies are as common as yellow-cabs in New York.
That includes Lagos, Nigeria, where ride-hail startup Gokada has raised a $5.3 million Series A round to grow its two-wheel transit business.
Gokada has trained and on-boarded over 1000 motorcycles and their pilots on its app that connects commuters to moto-taxis and the company’s signature green, DOT approved helmets.
The startup has completed nearly 1 million rides since it was co-founded in 2018 by Fahim Saleh—a Bangladeshi entrepreneur who previously founded and exited Pathao, a motorcycle, bicycle, and car transportation company.
For Gokada’s Series A, Rise Capital led the investment joined by Adventure Capital, IC Global Partners, and Illinois based First MidWest Group. Coinciding with the round, Nigerian investor and Jobberman founder Ayodeji Adewunmi will join Gokada as co-CEO.
Gokada will use the financing to increase its fleet and ride volume, while developing a network to offer goods and services to its drivers. “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 told TechCrunch.
The startup differs from other ride-hail ventures in that it doesn’t split fare revenue with drivers. Gokada charges drivers a flat-fee of 3000 Nigerian Naira a day (around $8) to work on their platform. 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, micro-finance loans,” Saleh said.
Nigeria’s Gokada raises $5.3M round for its motorcycle ride-hail biz
“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,” said Saleh.
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.
Uber began offering a two-wheel transit option in East Africa in 2018, around the same time Bolt (previously Taxify) started motorcycle taxi service in Kenya.

Uber and Taxify are going head-to-head to digitize Africa’s two-wheeled taxis
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