Chowdeck harbors ambitions to conquer Nigeria's food delivery sector. Its ultimate aim is to transform into a "super-app for Africa."
He had trouble finding swift delivery choices in Lagos, Nigeria's most crowded city, as restaurants were either shut down or had significant wait times. So, he decided to take charge and seek a solution.
He stumbled upon an answer during a trip to Dubai in 2021. Aluko was astounded by the speed of food delivery apps there. "It was so swift," he mentioned. "I thought, 'If this can work in Dubai, why not Nigeria?'"
In October 2021, Aluko and his partners introduced Chowdeck, an on-demand food delivery app. This platform allows customers in eight Nigerian cities to order meals from approximately 2,000 cooperating restaurants. Aluko stated that the app has now served over 600,000 customers and collaborates with over 6,000 delivery drivers.
A report by McKinsey and Company suggested that the global food delivery market was valued at $150 billion in 2021, with a portion of its rapid growth attributable to the Covid-19 pandemic. The Chowdeck team saw this as an opportunity in the global market and aimed to be Nigeria's homegrown leader in the industry.
"I think we still have a lot more demand than supply," Aluko said. "Most delivery companies are struggling to meet the demand because there are more people wanting to order food than they can handle, and trends have shifted since Covid-19."
Aluko acknowledged that the startup sometimes struggled to keep up with demand. "We grew too fast... a lot of customers just bombard our platform," he said, adding that the company is always looking for ways to improve efficiency and meet the needs of its growing consumer base.
In April, Chowdeck secured $2.5 million in seed funding from several investors and the YCombinator startup accelerator. Aluko stated that this money would be used to enhance delivery efficiency and expand to more cities in Nigeria. "The aim of the funding is to ensure that we can provide and grant the best experience to our customers," he said.
"Scratching the surface"
Food delivery apps have been gaining popularity worldwide, with Uber Eats and DoorDash among the most popular in Europe and the US respectively.
A report by the management consulting firm IMARC predicted that Nigeria's online food delivery market would grow by over 10% to close to $2.4 billion by 2032. One key factor for boosting business for on-demand delivery apps is improved internet access. For years, Nigeria has been increasing its internet penetration; currently, over 40% of the population has broadband access, as presented by the Nigeria Communications Commission.
In Africa, various startups like FoodCourt, Heyfood, and SendMe are competing to become the continent's leading food delivery app. Many are based in Nigeria, one of Africa's wealthiest countries, and have also received backing from Y Combinator – which previously supported DoorDash.
Despite the growing competition in their own backyard, Aluko and the Chowdeck team believe they have only "scratched the surface." Since launching, Chowdeck has expanded beyond food delivery to include options for pharmacy, grocery, and package delivery services in response to customer demands.
As the company expands, Aluko hopes that Chowdeck can one day become "a super app for Africa." "I see us being the app on everyone's phone... (so that) from travel to transport, everything you need can be done for you on one app," he said.
The global food delivery market, valued at $150 billion in 2021, presented an opportunity for Chowdeck to establish itself as Nigeria's homegrown leader in the industry.
Food delivery apps are not only popular in developed countries like Europe and the US, but also in Africa, with startups like FoodCourt, Heyfood, and SendM competing for the title of the continent's leading food delivery app.
