When two of Indonesia’s greatest firms — ride-hailing firm Gojek and e-commerce market Tokopedia — joined forces as GoTo Group final month, a key spotlight from the merger was that the last-mile supply house remains to be an enormous international development.
In Nigeria, the e-commerce and last-mile supply market is projected to be value over $20 billion in the subsequent 5 years. Big gamers like Jumia have appreciable market share but smaller platforms are more and more carving out theirs. One of such is ride-hailing-turned-logistics firm Gokada.
Gokada launched in 2018 as a ride-hailing firm in Lagos, Nigeria. But in 2020, Gokada started providing logistics (Gsend) and meals supply companies (GShop) after a ride-hailing ban by the Lagos State authorities affected its operations. Today, the corporate is combining all these companies (which have operated independently in the previous) right into a single utility.
“In September and October, we launched GShop which is the meals supply platform for Gokada. What we realized from our clients was that whereas they have been utilizing the Gsend and GShop individually, they got here to us asking if we may put them collectively,” stated Gokada CEO Nikhil Goel to TechCrunch. “So doing that is extra like a transition from different issues we have been doing and making it simpler for our clients to have all our companies in one platform and create a super app.”
Gokada’s super app plans are coming off the again of a formidable 12 months for the corporate regardless of a troubling first few months throughout the pandemic. As early as February, the corporate downsized and laid off greater than half its workers after the ban on bikes in Lagos. It shortly pivoted to logistics and meals supply and hasn’t seemed again.
This previous 12 months, Gokada has crossed over $100 million in annualized transaction worth. It has additionally helped greater than 30,000 retailers on its platform to execute over 1 million meals supply and e-commerce orders.
“Before Gokada ventured into ride-hailing in Lagos, individuals questioned us. When we entered the supply house, it was the identical query individuals requested. They stated we didn’t have the expertise. But immediately, when you take a look at it critically, we’ve modified this market in a unique method,” Goel stated.
Goel, who took over the reins at Gokada this March after founder Fahim Saleh tragically handed on, has been instrumental to the corporate’s spectacular development thus far. Per info shared by Gokada, the corporate’s quantity development has elevated 3x in the final six months whereas income elevated 10x throughout the previous 12 months.
Before turning into CEO, Goel had three roles since becoming a member of the corporate in 2019 — VP of Rides, COO, and appearing president. Previously, he additionally co-founded Indian edtech startup Classplus and labored as a common supervisor at Indian meals supply big Zomato. His stint at Zomato and information of the food-delivery and logistics house shall be key to how Gokada pulls off its super app ambitions.
Although Gokada is just current in Lagos, the corporate is wanting to launch its companies throughout different cities together with Abuja, Port Harcourt, Ibadan and Ogun. And not solely will the super app permit Gokada clients in these cities to entry meals supply, e-commerce (medicines and groceries amongst different provides), and logistics, however they are going to be in a position to use ride-hailing companies.
The firm plans to begin with neighbouring markets to Lagos — Ogun and Ibadan. In the latter, there’s already a ride-hailing platform in the shape of SafeBoda. The firm, which is current in Uganda and Nigeria, employs a super app mannequin in the East African nation however gives solely ride-hailing companies in Ibadan, the one Nigerian metropolis the place it operates.
For a lot of final 12 months, SafeBoda has loved dominance in the southwestern metropolis however Gokada’s arrival, particularly as it plans to provide different companies, may threaten its commanding place.
“We began with its ride-hailing service in Lagos. We have been largely identified as one of the pioneers of ride-hailing in Lagos earlier than the ban. So far, we’ve not ventured exterior Lagos, and the rationale for that has been that we needed to stay centered on our new enterprise right here. And it’s evident that whenever you transfer throughout Lagos, you will note our supply bikes in all places on the highway. But ride-hailing will at all times stick with us wherever we go exterior town,” the CEO added. Gokada is in talks to safe operational licenses for ride-hailing however has already acquired a NIPOST licence to mitigate future dangers on the regulatory entrance and permit them to function courier logistics companies throughout the nation.
While companies in a super app can differ from one platform to one other, funds is the defining performance that ties these choices collectively. For now, Gokada solely supplies a subset of that which is a pockets function and a debit card choice to pay for these companies. On why that is the case, Goel stated: “Before many of these firms like Grab and Gojek received into funds, they have been offering different companies. The thought for a super app is to present clients with totally different companies below one umbrella to ease their lives. That’s what we’re doing however we’re open to a funds play in the long run.”
Unlike different markets in Asia, Africa doesn’t have clear leaders in the super app race. Therefore, Gokada will be part of a rising record of platforms clamouring for supremacy in their respective markets, a spot OPay appeared to be gunning for earlier than shutting down its non-fintech verticals final 12 months to concentrate on its cost companies.