Bolt Food delivery service that offers customers a quick and convenient way to have their favorite dishes at their doorstep, has announced plans to exit Nigeria by December 7, 2023, citing business reasons.
The food delivery company disclosed that its decision to exit the Nigerian market is coming after it managed to control only 5% of the thriving Nigerian market, falling short of its expectations.
In a statement, the company said,
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“At this time, we have made the difficult decision to discontinue our food delivery operations in Nigeria due to business reasons. The decision to exit this market is necessary to streamline our resources and maximize our overall efficiency as a company”.
The move is part of the company’s efforts to streamline its resources and maximize its overall efficiency.
Bolt’s communications manager in Nigeria, Femi Adeyemo said that the company had to make the tough decision after it carefully evaluated its performance in Nigeria. He added that the company operates on the principle of frugality and efficiency.
In his words,
“Over the last 3 years, we have heavily invested in these markets, investing in low commissions to increase selection and incentives to encourage customers to move over to Bolt Food. Unfortunately, in Nigeria, these investments haven’t been successful and have only managed to achieve less than 5% market share”.
As Bolt exits the Nigerian market, it has put efforts in place to ensure a smooth transition for couriers and merchants. While exiting the delivery space, the company says it remains committed to other ventures in Nigeria, as it will continue delivering quality services in different areas.
Bolt launched its food delivery services in Nigeria in October 2021, following the increased demand for food delivery services during the COVID-19 pandemic period.
Since its launch in Nigeria, Bolt Food claims to have partnered with over 10,000 restaurants, delivered over one million meals and onboarded 23,000 agents and 12,000 merchants.
The company during its operation in Nigeria, faced stiff competition from major industry players which include Jumia Food, Chowdeck, Chicken Republic, Buyfood, and Glovo, amongst others.
However, reports reveal that the Nigeria food industry is faced with several challenges which include managing customer expectations, improper food handling, fluctuating market prices, logistical challenges, and several others.
Despite the challenges in Nigeria’s food delivery sector, it has remained attractive, drawing in New customers seeking convenience and diverse food options. Valued at $834.7 million in 2022, the online food delivery market in Nigeria is predicted to grow at a rate of 12.2%, reaching $1,719.4 million from 2023 to 2028.
The growing consumption of ready-to-eat (RTE) and fast-food products, increasing online food ordering activities of working individuals, and rising integration of advanced technologies in online food ordering and delivering systems represent some of the key factors driving the Nigerian market.
With rising investment, maturing business models, and rapid digitalization across Africa, the food delivery industry in Nigeria looks well placed for 10x growth over the next decade.