Transitioning Towards Efficiency and Sustainability

Gokada, the trailblazing Nigerian last-mile delivery company, is making waves with its strategic shift towards an asset-light business model, a move aimed at bolstering its fundraising efforts. This transformative approach, confirmed by Oluwaseun Omotosho, the company's Chief Operating Officer, marks a pivotal moment in Gokada's evolution, dating back to 2022.

A Paradigm Shift: Embracing Asset-Light Model

In a bold departure from traditional norms, Gokada now operates with a mere 10% ownership stake in approximately 5,000 bikes powering its platform. Departing from the conventional employer-employee dynamic, Gokada has pivoted towards a partnership model, wherein drivers are onboarded as partners, responsible for a commission per completed order.

A Strategic Evolution

Established in 2017, Gokada initially relied on a hire-purchase system, wherein the company bore the initial costs of bike acquisition, subsequently recouped through drivers' daily repayments over a maximum period of three years. However, the escalating maintenance expenses associated with bike ownership posed a significant financial burden, endangering the company's viability. Recognizing this, COO Omotosho spearheaded a strategic revision, shifting maintenance costs to drivers, thereby augmenting Gokada's revenue streams in 2022.

Paving the Path to Sustainability

Looking ahead, Gokada's operational blueprint steers away from direct bike ownership for drivers. Instead, the company is poised to collaborate with financing entities, facilitating bike acquisition for drivers while streamlining operations to manage bike fleets and payment collections.

Currently engaged in discussions with potential investors for the upcoming fiscal year, Gokada remains discreet about the specifics, underscoring the company's commitment to securing sustainable growth avenues. Notably, past endeavors, including the contemplated sale of competitor Kwik Logistics in 2022 and a crowdfunding campaign targeting $100,000 in 2023, exemplify Gokada's relentless pursuit of financial fortification.

Weathering Turbulent Tides

Gokada's journey has been punctuated by tumultuous episodes, from the regulatory ban on two-wheelers in Lagos in 2020 to the tragic demise of former CEO Fahim Saleh the same year. Yet, resilient in the face of adversity, the company recalibrated its focus, transitioning from ride-hailing to delivery services. The ensuing macroeconomic headwinds in 2023 necessitated organizational realignments, marked by layoffs, office downsizing, and vendor negotiations. However, Gokada has emerged from these trials with renewed vigor, retaining a workforce of approximately 30 individuals and charting a course towards sustainable growth and innovation.

In essence, Gokada's embrace of the asset-light model epitomizes its unwavering commitment to operational excellence, financial resilience, and adaptive prowess, positioning the company at the vanguard of Nigeria's burgeoning tech ecosystem.