Bolt Food leaves Nigeria

by MMC
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The food delivery service, launched in 2021, cited strategic reasons for closing its doors in the country.

Nigerians will no longer be able to place food orders on the Bolt Food app as Bolt shuts down its food delivery service in the country from December 7, 2023. The company announced the decision in a bid to streamline its resources and maximize its overall effectiveness. .

Bolt, which currently offers food delivery services in 16 countries and 33 cities around the world, launched Bolt Food in Nigeria in October 2021 after increased demand for food delivery services during the pandemic. Since its launch in the country, Bolt Food claims to have partnered with over 10,000 restaurants, delivered over a million meals and onboarded 23,000 agents and 12,000 merchants.

When Bolt Food launched, its main competitors were Jumia Food and Gokada before new competitors like Glovo, Chowdeck and Buyfood emerged in the $834.7 million Nigerian food delivery market . While Bolt Food’s decision to exit was blamed on the need to streamline resources, its competitor, ChowDeck, a Nigerian food delivery startup backed by Y Combinator, recently crossed ₦billion ($1.2 million) in months value of the order. ChowDeck CEO Femi Aluko says Chowdeck’s growth in October was organic.

Food delivery companies in the country are facing stringent macroeconomic challenges that have affected their operations. Rising fuel prices have led logistics startups like Bolt to increase delivery fees from 20 to 50%. A rising inflation rate also means that these logistics companies will see their operating costs increase. In addition to these macroeconomic conditions, the poor road network makes travel difficult and time-consuming for delivery people, ultimately leading to delivery delays and customer dissatisfaction. Furthermore, the food delivery market in Nigeria is becoming increasingly competitive, with new players constantly entering the market. Sometimes inaccurate locations on maps affect food deliveries and notorious traffic jams in places like Lagos add to the list of obstacles faced by this food delivery service.

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