On December 7, 2023, Bolt Food will exit the Nigerian market.
"At this time, we have made the difficult decision to discontinue our food delivery operations in Nigeria due to business reasons," the company said in a statement obtained by Techpoint Africa.
“The decision to exit this market is necessary to streamline our resources and maximise our overall efficiency as a company. This means that our users will not be able to place Bolt Food orders through our food app after the 7th of December, 2023.”
In March 2021, Bolt hinted at its intention to enter the Nigerian food delivery market. Increased demand for food delivery services during the pandemic prompted this decision.
At the time, the company announced it was looking to hire a restaurant sales manager with prior experience forming partnerships with other local businesses.
Bolt Food extended its reach into other places in Lagos, including Ajah, Sangotedo, Festac, Satellite Town, Egbeda, and Ogba, in April 2023.
The company, which partnered with the eaters who buy the food, the restaurants who prepare the food, and the couriers who deliver the food, stated in a recent interview that it values its relationships with customers by providing value in the areas of affordability, selection, and service quality; for its couriers, it provides enough work for decent pay; and for its restaurants, it provides an excellent channel for selling premium meals.
Consequently, the company said that it is working closely with its couriers and merchants to ensure a smooth transition during this process.
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Per the food delivery service, it remains fully committed to its other verticals in the country and will continue to focus on delivering good-quality services to its customers.
The growing demand for convenience and a wide selection of food options has led to a notable growth in Nigeria's food delivery market. IMARC Group estimated that the Nigerian online food delivery market would be worth $834.7 million in 2022. From 2023 to 2028, the market is expected to grow at a compound annual growth rate (CAGR) of 12.2%, reaching $1,719.4 million.
Bolt Food's rivals include Glovo, Chowdeck, Buyfood, and Jumia Food. Glovo recently announced that it would be collaborating with Chicken Republic to deliver food to Nigerians, making Chicken Republic terminate its affiliations with Jumia Food and Bolt Food.
However, the food delivery industry faces several challenges, including managing customer expectations, improper food handling, fluctuating market prices, and logistical challenges. Yet, because so many Nigerians eat out, food delivery services continue to attract new customers daily.