Topics
Latest
AI
Amazon
Image Credits:Chowdeck
Apps
Biotech & Health
Climate
Image Credits:Chowdeck
Cloud Computing
Commerce
Crypto
initiative
EVs
Fintech
Fundraising
gadget
punt
Government & Policy
Hardware
layoff
Media & Entertainment
Meta
Microsoft
Privacy
Robotics
security system
Social
Space
inauguration
TikTok
Transportation
speculation
More from TechCrunch
Events
Startup Battlefield
StrictlyVC
Podcasts
video
Partner Content
TechCrunch Brand Studio
Crunchboard
Contact Us
Food is significant to Nigerians , with households spending closely 60 % of their income on it , the eminent globally , according toofficial write up . This strong affinity for food , pair off with the rising of online shopping , sets the microscope stage for Nigeria ’s food delivery grocery topotentially reach$2 billion to $ 3 billion by 2032 .
But despite the hopeful mart size of it , there is n’t a clear leader yet . Now , Lagos - basedChowdeck , backed by Y Combinator and armed with a $ 2.5 million in germ investment , aims to make its mark in a space that hasburned heavyweights likeJumiaandBolt .
Founded byFemi Aluko , Olumide Ojo , andLanre Yusuf , Chowdeck offer consumer the convenience of ordering intellectual nourishment — in the main fain meals but also some foodstuff from grocers and supermarkets — and have it delivered to their doorstep within an norm of 30 minutes . CEO Aluko partake that the inspiration for launch the startup follow from his experience of quick deliveries and exceptional customer serving during a study trip to Dubai .
“ tell food for thought in Nigeria would usually take one or two hours , ” he said . “ But each metre I ordered intellectual nourishment during my three - calendar month halt in Dubai , I systematically received it on meter . If there were any delays , the eating house would call me to apologize . It was telling to see , and I wondered if we could replicate the same stratum of servicing in Nigeria . ”
Capturing just some of the existing market would exemplify a big concern for a new food delivery inauguration . In the first one-half of 2023 alone , Nigerians spent over₦60 trillion ( $ 43.5 billion ) on solid food and household items , perthe country’stop means for prescribed statistics .
Aluko and his Colorado - founders initially experimented with the concept by using a few bikes and partnering with two restaurants . After refining their approaching , they officially launched the first version of the product in October 2021 . Since then , the platform has experienced significant growth , with more than 3,000 riders unite and over 500,000 user ( Aluko articulate over 100,000 are active monthly on the platform ) .
Less competition, more growth
Chowdeck ’s remarkable ontogeny is evident , especially in a militant market where , at its launching , major players like Jumia Food and Bolt Food already had a strong footing with thousands of customers .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
Additionally , give the industry ’s report for thin net income margins and infrastructural challenges like traffic and poor roads causing delays in delivery times , the central question was how Chowdeck designate to navigate these obstruction and cut up out its recess .
Later fledgeling in a market have the advantage of learning from the experiences of earlier players . Unlike its predecessors , Chowdeck recognized the grandness of maintaining confident unit political economy from the outset . While other food obstetrical delivery platforms often relied on high deduction , Chowdeck opted for a different approaching : optimise its business enterprise example to check sustainability by denigrate discounts and only offer them on behalf of its partner restaurants when necessary .
“ We took the prison term to figure out the right economics for our legal transfer business organization , which is why we ’re not big on offer unrealistic rebate , ” explained Aluko , a former principal engineer at Stripe subordinate Paystack . “ This overture kept us focused on selling and direct the right customer rather than trying to capture everyone , which could ’ve compromised our political economy and marketing strategies . ”
Jumia drop out food legal transfer because of deep - pocketed ‘ aggressive ’ competition , CEO enunciate
By the end of 2023 , Jumia Food and Bolt Food had exited the Nigerian marketciting various business reason , leave Glovo as Chowdeck ’s main rival . Both exits partly chip in to Chowdeck ’s almost twofold user development within the last six month .
Prioritizing convenience
Aluko strain that Chowdeck ’s charm lies in its gizmo . While not necessarily the most cost - good option , he added that Chowdeck target client who prioritise time and are willing to ante up for fast deliveries .
The startup ’s saving arrangement rely on constituent such as geotagging , offering various vehicle option from wheel to motorbike , and enforcing nonindulgent regularization on marketer and rider . ( For exemplar , vendors must accept orders within a five - moment windowpane ; loser to do so leads to order cancellation and fall precedence for the vendor . )
Similarly , Chowdeck employ machine-driven processes to streamline client - passenger connection , utilize in - house data for everyday demand prediction and required supplying assessment . If , for illustration , an average passenger completes eight deliveries daily and the platform anticipates 10,000 deliveries , at least 1,250 riders need to be available for that day .
Chowdeck ’s logistics setup not only benefit lowly food vendors and larger speedy - service eatery like Burger King and Chicken Republic but also unfold to supermarket such as ShopRite and pharmacies . The startup , operate across eight cities , has apply lessons from its flagship business to establish delivery services in supermarket / market and pharmacy verticals . In 2023 , Chowdeck had more than 1,500 active vendors across the three verticals ; to boot , it introduced a electrical relay service for intra - city software movement in Lagos .
Glovo to double up down African investiture in the next 12 month — but will it stay put ?
Rider earnings
Last year , the program ’s yearly crying merchandise time value ( GMV ) across these verticals fend at over ₦ 7 billion ( $ 5.8 million ) . That October , it hit a milestone , crossing the ₦ 1 billion ( $ 830,000 ) mark for the first prison term . By March 2024 , it had doubled that figure , hit ₦ 2.4 billion ( $ 2 million ) . Lagos yield 80 % of Chowdeck ’s intensity , while the continue 20 % come from other metropolis : Abuja , Port Harcourt , Ibadan , Benin City , Ilorin , Abeokuta and Asaba .
Chowdeck , with a take rate of 24 % , saw its revenues , which amount from vendor commissions , avail fees , upsurge complaint and delivery fee , increase by 1,200 % between 2022 and 2023 , according to Aluko .
As a fast - growing business , Chowdeck mean to use the newly raised capital to improve its operational efficiency and extend its reach to more city across Nigeria . Yet , theon - need delivery serviceis also committed to leveraging the investment funds to better the experience for its customers , vendors , and particularly delivery riders , whoseearnings currently exceed three to five times Nigeria ’s monthly minimum wage , Aluko noted .
“ After a few months of building Chowdeck , it was remove the degree of impingement we were go to have and teething problem we could figure out at scale in the country , especially around earnings , ” remarked Aluko . “ For many citizenry , including us , it was interesting to see our riders getting give between₦100,000 - 200,000 monthly ( $ 83-$170 ) regularly and productively . ”
The seminal fluid rhythm attracted investiture from far-famed backers , including YC , Goodwater Capital , FounderX Ventures , HoaQ Fund , Levare Ventures , True Culture Funds and Haleakala Ventures . laminitis such as Simon Borrero and Juan Pablo Ortega ( of Rappi ) , Shola Akinlade and Ezra Olubi ( of Paystack ) also joined the investor list .
YC ’s latest heap cuts African startup comportment by more than half
