Bolt to shut down food delivery service in Nigeria next month
Bolt, the ride-hailing company, has decided to shut down its food delivery service, Bolt Food, in Nigeria starting from December 7, 2023. The decision is part of a strategic move by Bolt to streamline resources and enhance overall efficiency.
Launched in Nigeria in October 2021, Bolt Food entered the market during a surge in demand for food delivery services amid the COVID-19 pandemic. Since its introduction, Bolt Food claims to have partnered with over 10,000 restaurants, delivered more than one million meals, and enlisted 23,000 agents and 12,000 merchants.
Bolt Food faced competition from various players in the Nigerian food delivery market, including Jumia Food, Gokada, Glovo, Chowdeck, and Buyfood, operating in a market estimated at $834.7 million. The decision to discontinue the food delivery service reflects the dynamic nature of the sector and the need for companies to reassess their strategies in response to market conditions.
Key Takeaways
The online food delivery market in Nigeria has experienced substantial growth, driven by increasing demand for convenience and a diverse range of food options. According to estimates from IMARC Group, the Nigerian online food delivery market reached a value of $834.7 million in 2022. The market is projected to continue growing at a compound annual growth rate of 12.2% from 2023 to 2028, reaching $1,719.4 million. Bolt Food's competitors in this expanding market include Glovo, Chowdeck, Buyfood, and Jumia Food. Glovo recently announced a collaboration with Chicken Republic, marking a shift in the partnerships within the food delivery industry. Despite its growth, the food delivery sector faces various challenges, including the management of customer expectations, issues related to food handling, market price fluctuations, and logistical hurdles. However, the prevalence of dining out in Nigerian culture continues to drive new customers to food delivery services, contributing to the industry's ongoing expansion.
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