According to an anonymous source close to the matter;
“When Fahim got the money, he used a bulk of it to buy over 2,000 bikes where each bike cost about $1500 without factoring the cost of helmet, trackers, Bluetooth, shipping and custom fees. Multiplied by 2,000 bikes, that’s a bulk of the fundraising. Having spent a bulk of the fundraising, they don’t have enough funds in the bank.
“Secondly, they couldn’t onboard enough riders and because of that, they were already in a financial crisis by December as they struggled to pay salary. Then they secretly laid off some staff. But immediately they heard the news of the okada ban, they sacked close to 70% of the staff as a cover-up of their previous sackings.”
The source also claims that Adewunmi, the co-CEO hired in May 2019, left the company last month.
In addition to this, another source claims that Gokada laid off most of its staff two days after the announcement of the ban.
This caused the startups to engage in a protest against the new regulation. Also, CEO, Saleh released a video addressing the ban, so it comes as a surprise if the green-branded motorcycle-hailing service has taken this course of action.
This is a developing story.
“While much of your report is accurate,” the tweet reads, “we still have money in the bank and are pivoting towards deliveries while this transport ban gets sorted. We were due to make a profit in January before the ban was announced.”
Gokada CEO, Fahim Saleh has confirmed the layoffs, via a tweet