Nigeria’s food sector is a behemoth. It keeps growing as food plays a central role in Nigerian households, accounting for nearly 60% of household expenditures — one of the highest proportions globally.
According to recent data, Nigerians spent a staggering ₦61.08 trillion on food, household items, and services in the first half of 2023, marking a 2.85% increase from the same period in 2022. The average worker allocates a substantial 65% of their salary towards food expenses.
Earlier, consumer spending in Nigeria was projected to reach $128.6 billion by 2024, a reality we now seem to have surpassed. At the confluence of this robust demand for food is the growing popularity of online shopping which has in turn fueled a lucrative opportunity for the country’s food delivery market, which is poised to expand to $2-$3 billion by 2032.
Introducing Chowdeck
Chowdeck, founded in 2021 by a trio, offers a seamless way for Nigerians to order food and groceries, with delivery times averaging 30 minutes. The platform collaborates with various restaurants —from popular chains to local vendors, in its quest to providing users with diverse options.
Its mobile app is designed for ease of use —featuring live order tracking, multiple payment methods, and loyalty programs. For restaurants onboard, they benefit from the startup’s expanded customer reach, efficient delivery systems, and data insights to better understand consumer preferences.
Did you know?
- Origin: Chowdeck was launched in October 2021, and initially started with two restaurant partners, and a few delivery bikes before scaling its operations.
- Growth: Chowdeck now operates in eight cities, including Lagos, Abuja, and Port Harcourt, with over 3,000 riders and more than 500,000 users.
- Funding: Chowdeck secured $2.5 million in seed investment from notable investors, including Y Combinator and African tech founders.
- Revenue Streams: The company earns through commissions, delivery fees, surge pricing, and service charges.
- Strong Financial Performance: By March 2024, the company’s gross merchandise value (GMV) had reached ₦2.4 billion ($2 million).
- Wide Partnerships: Collaborates with quick-service restaurants like Burger King and Chicken Republic and supermarkets.
How it started
The idea of Chowdeck was born out of the realization of Nigerians’ deep-seated love for good food. Femi Aluko, CEO and co-founder of Chowdeck, alongside his team, identified this opportunity, and pressed forward to bridge the gap between food enthusiasts and their desired cuisine.
“We know that Nigerians love good food and we just want to make it as easy as possible for them to access the food they desire,” he said. “Chowdeck was birthed to fulfil this purpose and we are committed to delivering truly excellent experiences for our customers, vendors and riders. We are pleased with the success we have achieved to date and excited to have raised these funds that will enable us to replicate that success in more parts of Nigeria, and add value to our customers, vendors and riders in as many ways as we can.”
Who are the founders of Chowdeck?
- Femi Aluko, CEO: He is a former Principal Engineer at Paystack, where he designed core payment systems for the African fintech player.
- Olumide Ojo, CTO: Experienced in African fintech, Olumide prior to founding Chowdeck has led technical teams across backend and frontend systems.
- Lanre Yusuf, COO: He was previously an Engineering Lead at Crown Interactive, specializing in business support solutions.
At Chowdeck, Femi, Olumide, and Lanre are the proverbial “aro meta ti ki n da obe nu” which can be loosely interpreted to English (from Yoruba) as “the three cooking stones that prevent the pot from falling off.” Here, Nigeria’s food delivery game rests on the trio’s shoulders as industry players with Chowdeck.
Investor Endorsements
Shola Akinlade, CEO and co-founder of Paystack, in his remarks, praised Chowdeck’s innovative approach, citing his interest to see the company grow into a household name.
“Chowdeck is not only addressing the crucial need for an efficient and reliable on-demand delivery service in Nigeria, the team embodies innovation and a commitment to excellence,” he said. “It is a privilege to be part of their journey and I look forward to celebrating more success with them in months and years to come. Apart from investing financially into the company, our experience with building Paystack puts us in a great position to provide a lot of practical support and I am excited to see what it is to come from the Chowdeck team.”
June Angelides, Partner at Levare Ventures, who spoke on the company’s execution and market fit, stated that the startup is solving a complicated African problem.
“Chowdeck has quickly become a household name across Nigeria, priding itself on very high standards of execution. They are addressing a large and complicated problem, especially in Africa, delivering goods at record speed. I am excited that they have proven that the opportunity is there beyond restaurants and supermarkets. The team have secured landmark partnerships with Shoprite, Chicken Republic and KFC, a sign of their grit. Their customers love them, their riders love them. There’s so much more to come and I’m excited to be with them on the journey.”
Chowdeck vs. Glovo
Both Chowdeck and Glovo connect customers with food delivery services via mobile and web apps. While Chowdeck’s approach is focused on specific regions and quick delivery that ensures meals remain fresh, Glovo, on the other hand offers a broader range of services to include pharmaceutical deliveries to compliment its food efforts.
A survey conducted by this correspondent reveals that Chowdeck operates in more Nigerian cities compared to Glovo. Also, reviews suggest that both platforms provide excellent customer support and professional riders.
Commentary
- Techparley understands that food, anywhere is a big business. It has made many millionaires from generations to generations. And, with the introduction of tech and mobility, Chowdeck, no doubt, is well positioned to exponentially become a para-food specialist giant.
- And, as Nigeria’s urban centers continue to expand, the demand for efficient food delivery services like Chowdeck is likely to grow further. But the usual fear is if any regulatory issues will not emerge from nowhere as the case with ride-hailing service that crippled efforts of Gokada, O-ride in Lagos.
- Also, for how long can Chowdeck sustain its mission to offer quality, affordability, and customer satisfaction as these metrics will remain critical components of its success.
