Gokada Expands: Ride-Hailing Launch in Nigeria & Super App Vision

The Rise of Super Apps: Gokada's Expansion in Nigeria

The recent merger of Gojek and Tokopedia to form GoTo Group in Indonesia underscored the continuing significance of the last-mile delivery sector on a global scale.

Nigeria's E-commerce and Delivery Market

The Nigerian e-commerce and last-mile delivery market is anticipated to exceed $20 billion in value within the next five years. While established companies like Jumia hold a substantial portion of the market, smaller platforms are progressively establishing their presence.

Gokada's Evolution

Gokada initially launched in Lagos, Nigeria, in 2018 as a ride-hailing service. Following a ban on ride-hailing by the Lagos State government in 2020, the company diversified its operations to include logistics (Gsend) and food delivery (GShop).

Currently, Gokada is integrating these previously independent services into a unified application, streamlining the user experience.

The Vision of a Super App

“We launched GShop in September and October as our food delivery platform,” explained Gokada CEO Nikhil Goel to TechCrunch. “Customers using Gsend and GShop separately requested a consolidated platform.”

“This transition aims to simplify access to all our services within a single app, effectively creating a super app for our users.”

Resilience and Growth

Despite a challenging start to the year due to the pandemic and the motorcycle ban, Gokada has demonstrated remarkable resilience. The company swiftly adapted by focusing on logistics and food delivery.

Gokada has now surpassed $100 million in annualized transaction value and facilitated over 1 million food delivery and e-commerce orders for more than 30,000 merchants.

Challenging the Status Quo

“Initially, there were doubts about our venture into ride-hailing in Lagos,” Goel stated. “Similar skepticism followed our entry into the delivery space. However, we have demonstrably transformed this market.”

Since assuming the role of CEO in March, following the tragic passing of founder Fahim Saleh, Goel has been pivotal in driving the company’s substantial growth.

Gokada’s volume growth has tripled in the last six months, while revenue has increased tenfold year-over-year.

Leadership and Experience

Prior to becoming CEO, Goel held several positions within Gokada – VP of Rides, COO, and acting president. He also co-founded the Indian edtech startup Classplus and served as a general manager at Zomato, a leading Indian food delivery service.

His experience at Zomato and understanding of the food delivery and logistics industries are expected to be crucial in realizing Gokada’s super app ambitions.

Expansion Plans

While currently operating in Lagos, Gokada intends to extend its services to other major Nigerian cities, including Abuja, Port Harcourt, Ibadan, and Ogun.

The super app will provide access to food delivery, e-commerce (including medicines and groceries), logistics, and ride-hailing services in these new locations.

Competition in Ibadan

Gokada plans to begin its expansion in Ogun and Ibadan. In Ibadan, it will encounter competition from SafeBoda, which already operates a ride-hailing platform.

SafeBoda, present in Uganda and Nigeria, employs a super app model in East Africa, but currently offers only ride-hailing services in Ibadan.

Maintaining a Competitive Edge

“We initially established our ride-hailing service in Lagos and were recognized as pioneers before the ban,” Goel noted. “We have focused on building our business here, and our delivery bikes are now a common sight on Lagos roads.”

“Ride-hailing will remain a core part of our offering as we expand beyond Lagos.” Gokada is actively pursuing operational licenses for ride-hailing and has already secured a NIPOST license to ensure compliance with regulatory requirements for courier logistics services nationwide.

The Future of Payments

While super apps often integrate payment solutions, Gokada currently offers a wallet feature and debit card payment options. Goel explained, “Many companies, like Grab and Gojek, introduced payments after establishing other services.”

“Our focus is on providing a comprehensive suite of services under one umbrella. We remain open to integrating a payments feature in the future.”

The Super App Landscape in Africa

Unlike the Asian market, Africa lacks a dominant super app player. Gokada will compete with a growing number of platforms vying for market leadership, a position previously pursued by OPay before it shifted its focus to payment services.