Nigeria’s food delivery market is poised for significant growth, with households spending a substantial portion of their income on food. The rise of online shopping has created a lucrative opportunity for startups like Lagos-based Chowdeck to make their mark in the industry.
Founded by Femi Aluko, Olumide Ojo, and Lanre Yusuf, Chowdeck offers customers the convenience of ordering food and receiving it within 30 minutes. Inspired by his experience of quick deliveries and exceptional customer service in Dubai, CEO Aluko saw an opportunity to replicate the same level of service in Nigeria.
Despite facing competition from established players like Jumia Food and Bolt Food, Chowdeck’s strategic approach to maintaining positive unit economics has set it apart. By focusing on sustainability and minimizing discounts, the startup has seen significant growth, attracting over 500,000 users and 3,000 riders.
Chowdeck’s emphasis on convenience has resonated with customers who prioritize time over cost. The startup’s efficient delivery system, which includes diverse vehicle options and strict regulations for vendors and riders, has enabled it to expand its services to supermarkets, pharmacies, and other verticals.
With a take rate of 24% and revenues increasing by 1,200% between 2022 and 2023, Chowdeck has demonstrated its potential for success in the market. The startup’s commitment to improving the experience for customers, vendors, and delivery riders, whose earnings exceed three to five times Nigeria’s monthly minimum wage, has attracted investment from notable backers.
As Chowdeck continues to grow and expand its reach across Nigeria, the future looks promising for the startup as it aims to revolutionize the food delivery industry in the country.