Bolt Food, online food ordering and delivery platform is pulling the plug on Nigeria operations this year,
The company announced its decision as a move to streamline
its resources and maximise its overall efficiency.
Just under two years since its launch in Nigeria, Bolt Food intends to cease its operations by December.
“The decision to exit this market is necessary to streamline
our resources and maximise our overall efficiency as a company. This means that
our users will not be able to place Bolt Food orders through our food app after
the 7th of December, 2023.”
In March 2021, Bolt hinted at its intention to enter the
Nigerian food delivery market. Increased demand for food delivery services
during the pandemic prompted this decision.
At the time, the company announced it was looking to hire a
restaurant sales manager with prior experience forming partnerships with other
local businesses.
In October 2021, the ride-hailing company launched Bolt Food
to take on rivals like Jumia Food and Gokada, facilitating simplified access to
food in Lagos.
Bolt Food extended its reach into other places in Lagos,
including Ajah, Sangotedo, Festac, Satellite Town, Egbeda, and Ogba, in April
2023.
The company, which partnered with the eaters who buy the
food, the restaurants who prepare the food, and the couriers who deliver the
food, stated in a recent interview that it values its relationships with
customers by providing value in the areas of affordability, selection, and
service quality; for its couriers, it provides enough work for decent pay; and
for its restaurants, it provides an excellent channel for selling premium
meals.
Consequently, the company said that it is working closely
with its couriers and merchants to ensure a smooth transition during this
process.
Per the food delivery service, it remains fully committed to
its other verticals in the country and will continue to focus on delivering
good-quality services to its customers.
The growing demand for convenience and a wide selection of
food options has led to a notable growth in Nigeria's food delivery market.
IMARC Group estimated that the Nigerian online food delivery market would be
worth $834.7 million in 2022. From 2023 to 2028, the market is expected to grow
at a compound annual growth rate (CAGR) of 12.2%, reaching $1,719.4 million.
Bolt Food's rivals include Glovo, Chowdeck, Buyfood, and
Jumia Food. Glovo recently announced that it would be collaborating with
Chicken Republic to deliver food to Nigerians, making Chicken Republic
terminate its affiliations with Jumia Food and Bolt Food.
However, the food delivery industry faces several
challenges, including managing customer expectations, improper food handling,
fluctuating market prices, and logistical challenges. Yet, because so many
Nigerians eat out, food delivery services continue to attract new customers
daily.
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