When ORide entered the bike-hailing market, its competitive pricing threatened a price war among market competitors and this possibility excited the customers and other stakeholders; however, Nigerians might not eventually get that battle which the country experienced three years ago with the cola-war.
ORide’s entry strategy was a wish come true for many Nigerians, and while the expectation is that market rivalry will drop prices to keep their customers from porting to ORide, Gokada has distanced itself from such a move.
Gokada had been the player expected to lead the charge against ORide, but the company has other plans and it doesn’t involve the Chinese bike-hailing company. Gokada told Nairametrics that the company’s activities are not being determined by its rivals’ operation.
How Gokada’s contract works: The company bears the cost 100% upfront, and then the GPilots (riders) pay a fixed amount from Monday to Friday for a 2-year period. When they are done with the payment, they own the asset and can decide to stay on the platform at a reduced cost or leave.
Gokada isn’t stepping into the ring: The pioneer of bike-hailing business in Nigeria said that it has built a brand over the years that attracts customers without having to offer discounts, and intends to build on it. Recall that Gokada had previously shut down operations on August 14, 2019, and resumed on August 26, 2019.
According to the company’s Co-CEO, Ayodeji Adewunmi, engaging in a price war is not a sustainable strategy, “I think like a brand and a company, we are not going to get into a price war. We don’t think this is a sustainable strategy. We would rather focus on the experience, and the reason we think this is important is that currently today, for every order we are fulfilling, we get about 15 additional orders we can’t fulfil. So it clearly shows that the market is there.
“We are also positioning the brand as a premium brand and we believe that once the experience is in place and as we keep growing, we will definitely be able to meet the current demand. Overall, we believe the market will grow.
“So for us, it’s not about offering discounts to be able to attract customers, because we already believe that we have a brand that attracts enough customers. Even with more brands (competitors) on the road, demand will continue growing,” Adewunmi said in a discussion with Nairametrics.
Market expansion and rival’s pace: With ORide already in three more states apart from Lagos, Gokada insists on making Lagos its fortress rather than allowing the expansion of ORide across Nigeria to dictate its pace. Gokada says that it’s not in a hurry to expand like its competitors; rather, it prefers to do the bike-hailing service better.
While users of Gokada have not been complaining of the app’s functionality, complaints about ORide’s app have been on the rise. However, ORide has over a million downloads, while Gokada has only managed over 100,000; although this doesn’t determine the number of rides ordered on both hailing apps.
[READ ALSO: Why Gokada should be worried about shutdown]
But for Adewunmi, the revenue potential of the bike-hailing market in Lagos is enormous, so there’s no need to rush to conquer new grounds. “We will not go to other cities because competitors are in other cities. We believe that Lagos is a massive opportunity, Lagos is approximately 750,000 okada market and on the back of the 750,000 okada, we are talking about 4 to 5 million rides a day.
“And on the back of that, we are talking about 3 to 4 and 5 billion dollar revenue opportunities. So we are not in a rush to be everywhere at the same time. Also, we are careful about how we deploy our capital because, at the end of the day, we believe that will be what differentiates us. Lagos State’s potential upside is really tremendous.”
Gokada open to regulation: While the talk of possible regulation by the Lagos State Government has drawn criticism and also been described as a threat to the growth of the bike-hailing market, Adewunmi says that regulation of the business will create an advantage for players in the market and attract needed investors.
“I think regulation will create a lot of advantages for the business. It will create the enabling environment for even more investment to come to space. So it’s something that we 100% embrace.”
He also added that the company is working with the executive, and legislative arms of government to ensure that whatever the conclusion is, “we can contribute to the regulation.”
[READ FURTHER: Is ORide behind Gokada’s shutdown of operations?]
House of Reps to make Youths globally competitive
House of Representatives is determined to make the Youths globally competitive.
“Facts don’t lie, a government that has devoted N500bn to youth empowerment every year. There’s Trader Moni, N-Power, and several others, they are all there,” he added.
Gbajabiamila added that the President Muhammadu Buhari’s administration has done a lot about youth empowerment and is ready to do more.
COVID-19: Ogun orders full reopening of churches, mosques, hotels
Religious centres and other public places have been reopened following the success recorded in flattening the curve of COVID-19.
The Ogun State Government has ordered the full reopening of churches, mosques, businesses, hotels, and entertainment centres across the state.
This was disclosed by the State Governor, Dapo Abiodun, in a statement signed by his Chief Press Secretary, Kunle Somorin, via the state’s Twitter handle on Wednesday.
Abiodun stated that the religious centres and other public places had been reopened, following the success recorded in flattening the curve of COVID-19.
According to him, the government is aware that many people are just recovering from the economic hardship imposed by COVID-19, as their activities had been affected by the lockdown, while necessary measures had been put in place to combat the pandemic.
He stated, “In the process of rebuilding the economy, the State Government was irrevocably committed to the successful implementation of the “Building our Future Together” agenda, and would ensure everything possible for people to have increased prosperity that would place the State on a sound footing towards continued development.
“Government would improve on testing, just as it continues to monitor the development and not hesitate to do selective lockdown should there be any flagrant disobedience to the set COVID-19 protocols.”
COVID-19: Ogun orders full reopening of churches, mosque, hotels
Pleased with the drop of COVID-19 infections in Ogun State, @dabiodunMFR, has announced that all hotels, viewing centres, marquees, event centres, suites, guest houses, motels, and establishments providing…. pic.twitter.com/sMiUe3DUt5
— Ogun State Government – OGSG (@OGSG_Official) October 28, 2020
What you should know
Governor Abiodun had closed religious centres, businesses and schools in March, as part of moves to flatten the curve of the coronavirus.
He later announced the reopening of only worship centres and schools in August.
Abiodun pegged the number of worshippers for each service at 200, and insisted that services must not exceed one and a half hours.
CBN reveals framework for the N75 billion Youth Investment Fund
The Nigerian Youth Investment Fund will be funded through the NIRSAL MFB window of the CBN.
The Central Bank of Nigeria (CBN) has revealed the implementation framework for the Nigerian Youth Investment Fund.
This was disclosed in a publication by the Development Finance Department under the auspices of the Central Bank of Nigeria.
The CBN stated that the Nigerian Youth Investment Fund (N-YIF) would be funded through NIRSAL MFB window, with an initial take-off seed capital of N12.5 billion.
The N-YIF aims to financially empower Nigerian youths to generate at least 500,000 jobs between 2020 and 2023.
Objectives of the scheme:
Improve access to finance for youths and youth-owned enterprises for national development.
Generate much-needed employment opportunities to curb youth restiveness.
Boost the managerial capacity of the youths, and develop their potentials to become the future large corporate organizations.
Explore Data on the Nairametrics Research Website
The fund targets young people between the ages of 18 and 35 years.
Beneficiaries of NMFB, TCF and AgSMEIS loans, and other government loan schemes that remain unpaid are also not eligible to participate.
Individuals (unregistered businesses) shall be determined based on activity/nature of projects subject to the maximum of N250,000.
Registered businesses (Business name, Limited Liability, Cooperative, Commodity Association) shall be determined by activity/nature of projects subject to the maximum of N3.0 million (including working capital).
The tenor of the intervention is for a Maximum of 5 years, depending on the nature of the business and the assets acquired, of which interest rate of not more than 5% under the intervention shall be charged annually.
The Federal Ministry of Youth and Sports Development (FMYSD) will collaborate with relevant stakeholders to identify potential training for training/mentoring.
The youths that are duly screened (and undergo the mandatory training where applicable) shall be advised to login to the portal provided by the NMFB to apply for the facility.