Bolt Food is preparing to exit Nigeria by December 2023 following a two-year stint but continues to flourish in Ghana, where it has successfully surpassed competitors like Glovo and Jumia Food for over four years. As Nigeria’s digital food service Chowdeck prepares to expand into Accra, it’s gearing up to challenge Bolt Food’s market dominance. Statista predicts that this market will grow to $291 million by 2029. Despite the looming competition, Bolt Food Ghana’s general manager, Ali Zaryab, views Chowdeck’s entry as “healthy competition” that could help sharpen their strategic edge.
“Being the sole major player in the market means that customer expectations are high,” said Zaryab during an interview. Bolt Food had been expecting another significant contender to enter the market following Glovo’s exit in 2024. Zaryab sees this as an opportunity to explore potential improvements and maintain their market leadership.
Chowdeck did not respond to requests for comments.
Zaryab raises questions about Chowdeck’s strategy of relying heavily on exclusive restaurant partnerships, which often involve high marketing costs and discounts. He speculates whether they will sustain this model in Accra’s smaller market, characterized by thin margins—the city hosts around 5 million residents, a third of Lagos’s population. According to Zaryab, Bolt Food’s success is built on cost efficiency, crucial in an industry burdened by courier fees and other expenses.
“We prioritize unit economics,” Zaryab emphasized. “If a deal isn’t feasible, we can exit amicably.” Cost containment isn’t the only focus; high order volume also helps balance expenses.
Bolt Food’s strategy revolves around a diverse vendor selection, high-quality service, and affordable pricing. Since June 2021, the company has expanded rapidly in Accra, adding numerous restaurants and over 200 non-food vendors such as pharmacies and retailers by 2024. They offer extended delivery hours and around-the-clock service in multiple zones. The company is also leveraging artificial intelligence to enhance user experience, although Zaryab declined to provide specifics on revenue or user metrics.
In Nigeria, Chowdeck expanded its user base from 319 in 2021 to over 1 million by October 2024. A large portion of this growth followed key partnerships, including exclusive deals with Chicken Republic, which significantly boosted their order volume. The Condia reported a 250% increase in order volume following the first partnership.
While exclusive partnerships can build trust, industry
Source: https://techcabal.com
