Nigeria’s food delivery industry whets investors’ appetite

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Sector forecast to double in value over eight years but soaring inflation will erode families’ spending power

Nigeria’s food delivery start-ups are attracting attention from international investors optimistic about the growing demand in Africa’s most populous nation for restaurant fare at home even as soaring food inflation bites. Homegrown industry leaders Chowdeck, FoodCourt and Heyfood, each backed by start-up incubator Y Combinator, as well as Spain’s Glovo, are jostling to grab market share and cater to a population whose average family spends about 60 per cent of their income on food.

The company, at the peak of its powers, could barely muster 19,000 daily orders across 11 countries, according to a person familiar with its operations. Elsewhere, in the US and Europe, the four biggest food delivery apps have struggled to sustain a pandemic-fuelled growth spurt and have collectively lost more than $20bn since they went public. Many question their potential to turn a profit.

 

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