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Couldn't connect to Docker daemon at http+docker://localhost - is it running?

ERROR: Couldn’t connect to Docker daemon at http+docker://localhost - is it running?

If it’s at a non-standard location, specify the URL with the DOCKER_HOST environment variable.

I am getting the above error on Ubuntu 18 machine when running docker compose on jenkins workspace /var/lib/jenkins/workspace

docker-compose version 1.25.1, build a82fef07
Docker version 19.03.5, build 633a0ea838
Distributor ID: Ubuntu
Description:    Ubuntu 18.04.3 LTS
Release:        18.04
Codename:       bionic
systemctl status docker.service

Jan 16 06:57:53 Wdsys dockerd[19160]: time="2020-01-16T06:57:53.569004581Z" level=error msg="Handler for POST /v1.30/build returned error: invalid reference format"