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Business News

Is ORide behind Gokada’s shutdown of operations?

Research carried out by Nairametrics has revealed that @GokadaNG’s shutdown could be as a result of the targeted poaching by the newcomer, @oride_ng.

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Gokada, Gokada, MaxNG slam Lagos government, says okada ban insensitive, calls for sector regularization
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Barely a day after Gokada suspended its operations in Nigeria, research carried out by Nairametrics has revealed that the company’s temporary shutdown could be as a result of the targeted poaching of some of its riders and senior executives by the newcomer, ORide.

It was discovered that ORide poached some senior staff who occupied vital positions at Gokada, including its co-founder sometime this year – barely 3 months the former started operation.

Should Gokada and Max.ng be afraid of ORide?

[READ MORE: Can Berger Paints increase market dominance by reducing prices?]

The Nigerian bike-hailing market currently has Max.ng, ORide and Gokada, competing for market share.

The bike-hailing business in Nigeria is a nascent market. However, it is currently experiencing a point and kill season with Gokada falling victim to ORide’s sword. The new entrant is on the offensive, aggressively recruiting experienced hands to accelerate its growth in the market. While this might look like a surprise move, it is however common for growing industries that require employees that are highly skilled.

Poached employees: Poaching is not new in the business world, it’s a method that even Nigerian plantain chips companies apply to conquer a market faster than the already existing players. ORide perfected this business strategy by poaching capable hands from Gokada.

  • Awolowo Moses was the Co-founder/COO of Gokada but he is now the Director of Business Operations at ORide.
  • Ebunoluwa Shipe served as the Head of Driver Support/Experience at Gokada but she now acts as the Senior Operations Manager at OPay.
  • Awe Oluwakayode is a Senior Operations Manager at OPay but was previously the Drivers Acquisition and Road Operations Officer at Gokada
  • Meanwhile, Akinwale Afolabi, who left his position as Head, Marketing of Gokada in February 2019, joined OPay in May 2019 as the Senior Manager, Growth and Marketing.

Riders dumped Gokada for ORide? There are reports that riders of Gokada left the bike-hailing pioneer for ORide after the latter offered them better payment package.

[READ MORE: Akin Alabi questions Jumia’s operating model, Jumia responded]

SSKOHN

Nairametrics learnt that the riders were offered between N35,000 and N36,000 to join ORide. This incentive resulted into an exodus of Gokada’s riders, increasing the riders at ORide and enabling the company to meet demand during its promo run in June and July 2019.

Gokada isn’t the only victim of ORide’s onslaught. It was discovered that Jumia‘s dispatchers and Max.ng riders were also lured to join ORide with better incentives and different amount as sign-on fee.

Also, the RADP (Ringier Africa Digital Publishing) – the parent company of Pulse NG experienced the touch of ORide.

Why Jumia? ORide is a company owned by Opera, and the parent company has plans for the Quick Restaurants Service which Jumia is part of. If ORide could aggressively come for Gokada and Max.ng, then Jumia wouldn’t be spared of the onslaught.

Stanbic 728 x 90

Gokada’s stance: Gokada had chosen to cite improvement of service as reason for its ‘temporary’ exit, but companies are not known to close shop just to improve service or retrain staff for better customer experience. It is, however, left to be seen if Gokada is truly putting customers first or tending to its wounds.

[READ MORE: Nigeria’s leading smartphone maker, Transsion, set for Chinese IPO]

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Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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    Business

    Hyundai and Kia to set up an assembly plants in Ghana by 2022

    The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants in Ghana.

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    Hyundai to invest $87 billion into producing 44 new electric vehicles, Hyundai partners Kia to invest €100m in electric vehicles 
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    Few weeks after Twitter announced its plans to open its first African office in Ghana, Hyundai and Kia have also concluded plans to set up an assembly plants in Ghana by 2022. The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants.

    Ghana’s Minister for Trade and Industry, Alan Kyerematen announced this on Twitter.

    READ: This is the New Tarrif Structure For Importing Tokunbo & Brand New Cars

    Pleased to announce that Hyundai & KIA are set to establish assembly plants in Ghana by the end of 2022 to join Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck. The Ghana Auto Development program = 3,600 assemblies & 6,600 manufacturing parts jobs in Ghana.

    The local assembly of vehicles, 3,600 direct and indirect jobs would be created in Ghana, and the addition of components and parts manufacturing will also add about 6,600 direct and indirect jobs.”

    READ: Toyota snubs Nigeria as it moves to establish assembly plants in Ghana, Ivory Coast 

    Why this matters

    More foreign companies are shunning Nigeria in favour of Ghana. Recently, Nairametrics reported that Amazon is set to situate its African Headquarters in South Africa, a multi-billion dollar investment that is projected to create over 20,000 jobs both directly and indirectly.

    Following its move to Ghana, Twitter CEO, Jack Dorsey cited a number of human rights-related reasons for the choice of Ghana over Nigeria. Added to this are rising insecurity, stifling government regulations and the gapping infrastructural deficit bedevilling Nigeria. Consequently, our nation is steadily losing opportunities to attract foreign companies that could be very instrumental in bridging its unemployment gap which is currently over 30%.

    SSKOHN

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    Business

    Passports: Backlog of undelievered passports to be fixed before May 31st – Minister

    The government also announced the launch of a new passport application system, which would be aided by fast track services nationwide.

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    The Federal Government disclosed that all backlogs of undelivered passport requests would be fixed before May 31st, and announced the launch of a new passport application system, which would be aided by fast track services nationwide.

    This was disclosed by Minister of Interior, Rauf Aregbesola, in a press briefing with newsmen on Thursday.

    What the Minister said

    “On or before May 31st, all backlogs of undelivered requests for passports will be totally met, unless such applications have a problem,” he said.

    “But before the deadline, the problematic application would be contacted, so that we know what’s wrong with the applications. Assuming there would be no problem, every successful application for a passport would be given a passport on or before May 31st,” he added.

    READ: Canada invites 3,900 new PR candidates, introduces new programme to attract Nigerians

    The new passport process

    The Minister disclosed that the FG will launch a new passport application process which would come into effect soon.

    “When you finish your application process, there would be a waiting period of six weeks to collect your passport, however, if you want an express service, there would be fast track centres nationwide, to meet requests for express passport users,” he said.

    What you should know 

    • Recall Nairametrics reported last month that the Federal Government inaugurated the Nigeria Immigration Service Passport Express Centre, which is a partnership with the private sector to enable the government offer passport services to Nigerians and make passports available in a maximum of 72 hours of a successful application.
    • The FG also launched the Electronic Temporary Passport to cater for Nigerians desirous of returning home but whose national passport is not available.

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