Imagine developing the business plan for your bike-hailing service and you wake up one morning and find out you are no longer to operate on major highways in one of the most populous cities in Nigeria.
This is what faced the management of bike-hailing startups in Nigeria – OPay, Max.ng, Gokada, e.t.c. when early this week, the Lagos state government said it would ban commercial bikes and tri-cycles from operating along the major highways in Lagos as from 1st of February 2020.
It is kinda akin to what happened to Uber in London last year when it was told its license would not be renewed. Even though the reason was different, bottomline was that they were told they could not operate in London anymore.
Well the bike-hailing startups in Lagos took to the streets and social media to protest the ban but the government did not change its mind.
The companies argued that they were operating within the law and that they were not affected by the ban, the government’s interpretation of the law stated otherwise.
According to the state government through Lagos State commissioner of transport, Dr. Frederick Olaseinde, “Let me make it clear, motorcycles and tricycles are not part of the Lagos masterplan. They came in because there is a gap, but they don’t have a place in a mega-city because of security and safety”
Based on the state government’s stand, the bike-hailing companies have had to adhere to the ban, suspending operations on the major highways. They have notified their customers on social media about the ban and the fact they will not be operating on the affected roads.
ORide had this to say on its social media page.
“This is to inform our esteemed customers that from Feb 1, 2020, ORide Riders will not be operating in the following areas: Ikeja, Surulere, Lagos Mainland, Lagos Island, Eti-Osa and Apapa.
We sincerely apologize for any inconvenience this might cause
Thank you for riding with us.”
As at today, 1st of February there is no sign of the Gokada, OPay and Max.ng riders on the roads.
It is believed that the companies will continue trying to negotiate with the state government to reverse the ban.
2 Comments
Pingback: Motorcycle-Hailing Startup, Gokada Lays Off Its Employees, Plans to Pivot into Logistics
Pingback: Gokada Appoints Nikhil Goel as its New CEO | Innovation Village | Technology, Product Reviews, Business