Some consider motorcycle taxis dangerous, but venture capitalists are investing millions in these ride-hailing startups
While the Lagos State government does not officially promote motorbike taxis, growing demand for ways to reduce maddeningly long commute times is making an increasing number of people jump on the backs of two-wheeled taxis in Nigeria.
Tech companies are now trying to make it easier for riders like Thomas to link up with motorcycle taxis no matter where these urban passengers may be. Last year, several ride-hailing applications designed to connect riders with motorcycle taxis were launched. One is called the Gokada app.
Residents in Lagos call these two-wheeled taxis “okadas”, because they are so much faster than cars. Okada is the name of Nigeria’s first private commercial airline, Okada Air.
Motorcycle taxis first showed up in the country’s commercial capital in the late 1990s.
During those early years, okadas got a bad reputation because of reckless operators and gruesome accidents. Back then, the number of broken bones and bloody limbs grew so fast that local media nicknamed a section of the National Orthopaedic Hospital Igbobi the “okada ward”.
Today, riding okadas is a little safer because Lagos State restricts them to certain inner streets.
Uber debuted in West Africa five years ago. Since then, there have been several less-than-remarkable local efforts to duplicate the company’s success in the United States. The standout appears to be ride-hailing apps for motorcycles because they are responding to Nigeria’s unique market
needs: They can zip through stalled traffic.
Users download an app and request rides on their smartphones, and branded motorcycles show up on demand. As an added feature, users can also hail branded bikes on the street. Since Gokada launched, three other motorcycle-hailing startups have debuted in Nigeria: Max, SafeBoda, and
Oride.
Gokada boasts over 1,000 riders. Max, founded by two alumni of the Massachusetts Institute of Technology in the US, says it has over 1,000 motorcyclists.
Anticipating billion-dollar market growth, investors have thrown millions of dollars at these startups. Rise Capital and a consortium of local funders invested $5.3m in Gokada. The company plans to use the money, in part, to open a state-of-the-art driver-training school to verify up to 500
operators at a time, thereby increasing daily rides tenfold.
Fahim Saleh, the cofounder and co-CEO of Gokada, admits his company exists in a grey area legally.
He says his team has exploited a Nigerian stipulation that says bikes with an engine capacity of greater than 200 cubic centimetres can travel on all major roads and highways. Some of Gokada’s bikes have been seized by government officials for other infractions, but the service continues to
grow. “They said if you can make it in New York, you can make it anywhere,” Saleh smiles, dismissing life in Manhattan. “I’ve lived in New York. If you can make it in Nigeria, you can [really] make it anywhere!”
