In a surprising turn of events, Bolt Food, the food delivery arm of the popular ride-hailing service, has announced its decision to cease operations in Nigeria starting from December 7, 2023.
Bolt Food’s decision to exit the Nigerian market is reportedly due to business reasons. The company has stated that this move is aimed at streamlining its resources and maximizing its overall efficiency. This means that Nigerians will no longer be able to place food orders on the Bolt Food app after December 7, 2023.
The Nigerian Food Delivery Market: A Competitive Landscape
The Nigerian food delivery market, estimated to be worth $834.7 million in 2022, has seen a surge in demand due to the convenience and wide selection of food options it offers. Bolt Food’s significant competitors in this market included Jumia Food, Gokada, Glovo, Chowdeck, and Buyfood.
Despite the growing demand, the food delivery industry faces several challenges, including managing customer expectations, improper food handling, fluctuating market prices, and logistical challenges. These factors, coupled with Bolt Food’s decision to exit, highlight the complexities of operating in this market.
While Bolt Food’s exit is a significant development, it does not signal the end of the food delivery market in Nigeria. Other players like Glovo, Chowdeck, and Buyfood continue to operate, catering to the daily food needs of many Nigerians.
Moreover, the market is expected to grow at a compound annual growth rate (CAGR) of 12.2%, reaching $1,719.4 million from 2023 to 2028. This projected growth indicates that despite the challenges, the demand for food delivery services remains strong.