A Decision to Streamline Resources for Optimal Efficiency
Come December 7, 2023, Bolt, the comprehensive mobility app, will cease its food delivery operations in Nigeria. The company has chosen to exit the food delivery service as part of a strategic move to streamline resources and enhance overall efficiency.
Bolt's decision aligns with its commitment to optimizing resources, but interestingly, it raises questions about the allocation of the announced €500 million investment in Africa. The cessation of food delivery services hints that Bolt may not be channeling a portion of this investment into this particular sector.
Bolt Food's Presence in Nigeria: A Brief Overview
Bolt Food entered Nigeria's food delivery scene approximately two years ago, stepping into a competitive arena alongside established players like Jumia Food, Glovo, and ChowDeck. Despite challenges faced by companies in the Nigerian market, such as escalating fuel costs, rising inflation, and the management of customer expectations, Bolt Food has been a notable contender. However, its coverage has been largely limited to major cities.
Market Dynamics: Challenges and Growth Projections
In a market report by IMARC, the Nigerian food delivery service market is anticipated to reach US$ 1,719.4 Million by 2028, exhibiting a noteworthy growth rate (CAGR) of 12.2% during 2023-2028. This projection reflects the potential and challenges inherent in the Nigerian food delivery landscape.
ChowDeck, a significant player in this market, recently celebrated surpassing ₦1 billion ($1.2 million) in monthly gross merchandise value (GMV), marking a remarkable 10x growth surge for the company that reportedly achieved ₦100 million monthly GMV merely ten months ago.
Bolt Food's Continental Presence: A Shift in Numbers
Bolt Food presently operates in ten countries across Africa, but with the exit from Nigeria, this number will be reduced to nine. The company's strategic realignment underscores the dynamism and complexities of the African market, prompting a recalibration of priorities.