Following Nigeria’s 2024 policy removing subsidies on petroleum products, the pump price of petrol naturally skyrocketed, leaving food delivery logistics companies – which rely on petrol-powered motorbikes – struggling to survive the sudden astronomical cost of doing business.
Many have floundered and shut down, including popular brands such as JumiaFood, Gokada, Glovo, and Bolt Food.
Yet, Chowdeck thrives, with its success ascribed to aggressive expansion across disparate locations in Nigeria – Lagos, Abuja, Ibadan, Asaba, Benin City, Abeokuta, Ilorin and Port Harcourt – which its competitors had ignored, to their peril.
Tobi Fasipe (Rider Operations Lead at Chowdeck, and Paystack alumnus) shares some additional insights that support this reasoning:
“It’s been an exhilarating journey at Chowdeck, and I’m thrilled to share some incredible milestones we’ve achieved recently. I’ve witnessed firsthand the phenomenal growth of our on-demand delivery service, and today, I’m delighted to announce that we’ve secured $2.5 million in seed funding.
“When I joined Chowdeck, we were processing just 1,000 deliveries daily. “Today, our dedicated team of over 3,000 riders handles a staggering 14,000 deliveries every single day across 8 major Nigerian cities. This meteoric rise is a result of our pursuit of excellence and our commitment to providing excellent service to our customers.
“Our growth is further reflected in our GMV, which has skyrocketed from ₦1 billion in October 2023 to an impressive ₦2.4 billion by March 2024 – a remarkable 140% increase in just six months. These numbers represent the trust and loyalty of our ever-growing customer base.
“At Chowdeck, we take immense pride in our rider network – the backbone of our operations. Our riders earn between ₦100,000 and ₦150,000, which is comparable to the monthly salaries of senior civil servants in Nigeria. We believe in empowering our riders with competitive earnings especially because majority of them are the breadwinners of their families.
“We are grateful to our investors, including Y Combinator, Goodwater, Shola Akinlade, Ezra Olubi (Paystack co-founder), SimĂłn Borrero, Juan Pablo Ortega (Rappi co-founder), June Angelides MBE, and many others, for their confidence in our vision and their unwavering support.
“As we embark on the next phase of our growth, we remain steadfast in our commitment to delivering exceptional service, fostering a culture of innovation, and creating value for all our stakeholders.”
To Chowdeck customers, riders, vendors, and employees, Tobi adds, in appreciation:
Together, we are reshaping the food delivery landscape in Africa, one order at a time. Buckle up, because this is just the beginning of an extraordinary journey!