As the competition between ride-hailing services continues to be stiffer across the country especially in Lagos, there have been growing concerns among stakeholders concerning the sustainability of the mode of operation being employed by ride-hailing startups.
Reacting to Gokada’s temporary shutdown, which was disclosed yesterday, August 14, 2019, the Spokesperson of the Lagos State Chapter of the All Progressives Congress (APC), Joe Igbokwe made it known that it is impossible for bike-hailing startups in the ride-hailing industry to survive in a densely populated State like Lagos.
Igbokwe said the funds invested in ride-hailing startups should have been invested in the Bus Rapid Transit (BRT) operated by the Lagos State Government, adding that if given a free rein to operate, bike-hailing services would jeopardise the government’s investment in BRT.
[READ ALSO: The Gambia removes former President’s image from its currency]
“Instead of partnering with government on BRT, you invested 5.3 million dollars in okada business and expect that Lagos State will allow you to jeopardise its multi-billion (sic) naira mass transit investments,” he posted on Facebook.
While it is unclear if Igbokwe, who is set to be appointed as a member of Lagos State Executive Council, spoke on behalf of the State Government, it is important to note that there has been a rumour that the Babajide Sanwoolu–led administration is considering the imposition of new regulations, including annual licensing fees of N25 million and annual taxes on ride-hailing startups.
[READ MORE: Tax Remittance: LIRS to integrate PID module into TIN]
Nairametrics had reported the temporary shutdown of Gokada, the first bike-hailing startup in the country. The company’s decision to ‘temporarily exit the market immediately’ was informed by the personal experience of its Chief Executive Officer (CEO), Fahim Saleh on one of Gokada’s bikes in Victoria Island, Lagos.
What you should know: Nigeria’s ride-hailing industry is relatively new but it’s an emerging market that promises so much revenue to investors. Its entry barrier is, however, high and costly to operate.
Just pondering…..
Perhaps we should not allow Uber, Taxify and the other Private transporters too or are they not in direct competition with the BRT
Perhaps we should even ban all citizens from owning their own vehicles so the billions put into the BRT would not be a waste
Perhaps the funding for the BRT was not tax from companies like Gokada
Perhaps we should shutdown the other TV stations in Lagos so that only LTV would be in operation and be more efficient
Perhaps we should shotdown all the eateries in Lagos so that the Lagos State Government can run restaurants for us
Perhaps that is why almost all the Nigerian owned corporations have been badly managed or gone into liquidation because the private sector was in competition with them
Perhaps NITEL should have continued under the Government whilst the other Telcos are muzzled for fear of being more efficient than Nitel and so run Nitel off the road
Perhaps one day the BRT would run within the inner roads of our state, the un-tarred roads the water logged roads and the uncharted roads just to drop us right at our door steps
Hope my ponderings are mere fantasies, as I hope Nigeria would one day be a great Country….
This is an amazing response to such ignorant and selfish statement from the lagos Apc personnel. No insults, just facts in sarcasm