Oride, Gokada, MAX.ng affected as Lagos bans bikes, tricycles from major highways

It is a sad day for ride-hailing startups in Lagos state as the state government has banned commercial motorcycles and tricycles from operating along major highways in the state.

The state government has proscribed their operations in 6 Local Government Areas (LGAs), 9 Local Council Development Areas (LCDAs) and 10 major highways across the State with effect from February 1.

The government also banned Okada and tricycles from plying 40 bridges and flyovers across the State.

The State Government directed security operatives to embark on a total enforcement of the State’s Transport Sector Reform Law of 2018 to immediately address the chaos and disorderliness created by illegal operations of Okada and tricycle riders in restricted areas.

According to the commissioner for Information and Strategy, Mr. Gbenga Omotoso, who made the announcement at the State House in Alausa today, the measures were taken by the Government in response to “scary figures” of fatal accidents recorded from operations of Okada and tricycles in the State between 2016 and 2019.

He said that from 2016 to 2019, there were over 10,000 accidents recorded at the General Hospitals alone. “This number excludes unreported cases and those recorded by other hospitals. The total number of deaths from reported cases is over 600 as at date.”

“Also, the rate of crimes aided by Okada and Keke keeps rising. They are also used as getaway means by criminals. Therefore, after consultations with stakeholders, the State Security Council, in compliance with the extant Transport Sector Reform Law 2018, has decided to commence enforcement of the law which bans the operation of Okada and Keke in six Local Government Areas and nine Local Council Development Areas (LCDAs).”

Omotoso said the enforcement would be total, warning that the Government would deal with violators in accordance with the Laws. He added that there would be zero tolerance for the movement of the banned vehicles on the listed highways and bridges. 

As laudable and welcome as this ban is, this is a major disruption to the operations of bike-hailing startups like Gokada, Oride, Max.ng and others. These companies have invested quite a lot hoping to break even within the shortest possible time considering the population of Lagos state.

In 2019, Gokada raised $5.3 million while Max.ng raised an undisclosed amount in a new round of funding, said to between $5 million and $7 million. OPay commenced its bike hailing business, Oride, in the same year hoping to take a piece of the action also.

Now it seems that these companies would have to go back to the drawing board to rethink their business strategies. Or they may need to sit down with the government to get waivers to do business in Lagos state.

Developing story….