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  • Tech - News - Startups
  • Updated: May 12, 2020

ORide Reacts To Shutdown Claims As It Begins To Sell-Off Motorcycles

ORide Reacts To Shutdown Claims As It Begins To Sell-Off Mot

 

An undisclosed number of Oride motorcycles were placed on sale this week, leading to claims that the ban on motorcycle operation in Lagos might be crippling the tech firm, but the Director Of Operations and Business Development at OExpress - a new subsidiary of ORide - Moses Awolowo, has clarified what led to the sell off.

Oride was one of the affected ride-hailing firms which had to abandon its operation after the Lagos State government banned motorcycle operation within the state, citing accidents and modern development of the state as reasons for the ban. Oride market rivals, Maxng, Gokada and traditional motorcycle operators (Okada) were equally affected.

This led to job redundancy in the ride-hailing space, and in order to shield the investment of their company, Gokada and Maxng converted their motorcycles into logistics service, while Oride birthed OExpress to also offer last-mile delivery service, pausing their ride-hailing operation.

In respect to the government's ban, Awolowo said ORide established OExpress to utilize the riders and motorbikes, and deploy them to fill the gap in the delivery market, "Based on our assessment of the strong gap in filling logistics and delivery services demand in Nigeria, and to support compliance of the Government's requirement to ban motorbikes in Lagos, ORide Services created a sub-service, OExpress, to utilize our riders and motorbikes on delivery logistics.

"We offer this for our new eCommerce businesses and any other customers. We are confident about the growth of eCommerce in the future of Nigeria and is committed to providing end-to-end sourcing, shopping, and logistics solutions on this. Furthermore, we are utilizing our logistics and delivery to offer customers safe ways to access goods and keep social distancing during this COVID-19 crisis." Awolowo told Allnews, while revealing that the service is currently in the pilot phase.

Why is ORide selling bikes after launching OExpress?

The number of motorcycles owned by the ride-hailing firms made them (over) equipped to compete against the likes of GIG Logistics, Kwik, delivery man, Easy Dispatch and Brain Express Courier in the budding delivery market in Nigeria. But with focus on Lagos market, it also means OExpress, which has access to thousands of ORide bikes has more bikes than it needed for operation.

According to Awolowo, this is the reason the company placed some of its motorcycles on sale, "As ORide Services launches into the delivery business, the company is making available, for sale, a small percentage of its motorbike inventory which is not being used in its business operations.

"We have more than enough bikes for OExpress. It only makes sense to sell the rest not needed. We put in strict requirements to make sure these assets are being put into good use and in compliance with government requirements." Awolowo said.

OCar launches unusual car-hailing service

Meanwhile, the mobility firm has also launched another car-hailing service model different from the regular car-hailing model. According to Awolowo, the new service will allow a driver to transport passengers who are also heading to his direction.

"We are also launching in Lagos, a new ride service called OCar Hitch - in a few weeks. It's a totally new transportation model in Lagos; It aims to match drivers who are planned to drive to a certain destination with the passengers who are also moving in the drivers' direction.

"It's environment-friendly (as will reduce the number of cars on the road) thereby helping the Government to reduce traffic on roads. Drivers can earn more money and passengers can spend less." Awolowo explained to Allnews.

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