According to a source, Gokada had spent most of its funding on acquiring new bikes after the two weeks hiatus it undertook in August 2019. Therefore, Gokada had little or no money to pay salaries and the layoffs were as a result of the impending financial crises facing the two-year-old startup.
Suggested Read: CONFIRMED: Motorcycle-hailing startup, Gokada has laid off most of its workforce.
In a response to this, Gokada founder and CEO, Fahim Saleh, confirmed the layoffs but refuted the financial crisis claims. He said in a tweet to Techpoint that, “while much of your report is accurate, 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.”
Techpoint reached out to Saleh to get a clearer picture on Gokada’s layoffs and pivot.
Why is Gokada pivoting to deliveries?
Initially when the Lagos state…