Anthropic Secures $3.5 Billion Funding Round, Valuing AI Chatbot Maker at $61.5 Billion
Anthropic, creator of AI chatbot Claude, finalizes massive funding round, solidifying its position in the AI technology space
Reese Morgan
In Nigeria, food delivery apps have become an essential part of daily life, with users relying on them to save time and navigate the chaos of modern living. However, as the cost of using these apps continues to rise, users are being forced to weigh the convenience they offer against the expense.
For users like Anita, a Lagos-based marketer, food delivery apps like Chowdeck and Glovo are more than just meal solutions – they are essential tools for managing a busy life. Despite resolving to reduce her reliance on these apps at the beginning of the year, Anita found herself falling back into old habits, with 20 orders already placed by mid-January. The tension between convenience and price is a constant internal debate for users like Anita, who struggle to justify the cost of using these apps.
However, not all users are concerned about the cost. Take Ada, for example, who placed 283 orders on Chowdeck in 2024 and has no qualms about the growing expense. For Ada, the time saved by using food delivery apps is invaluable, and she is willing to pay for the convenience they offer. Her experience is one of predictability, with reliable and efficient service that she values deeply.
But even for users like Ada, there are limitations to food delivery apps. Fayokunmi, another power user who placed nearly 300 orders in 2024, is considering switching to Glovo after a frustrating experience with Chowdeck. His issue wasn't just about food or cost – it was about being let down by an app he had relied on for years. The lack of resolution from Chowdeck's support team left him feeling alienated, and he's not ready to give up on food delivery apps altogether.
The shift in how people view food delivery apps is part of a broader trend. In a world where work and life demands are ever-growing, apps like Chowdeck and Glovo have embedded themselves into daily routines, making them more essential than ever. But this growing dependence comes with challenges. As food delivery services become more critical to people's lives, they also face higher expectations and increased scrutiny.
Providing convenience and consistent quality will be key to staying relevant in a contested market. Apps that can adapt quickly to user frustrations while keeping their core value proposition – time savings and convenience – intact will continue to thrive in the competitive food delivery landscape.
Variety is also a crucial factor for users, with a broad selection of restaurants being essential for attracting new customers and keeping them engaged. Chowdeck, which claims to have a million users, seems to have mastered this, with six out of ten "super users" saying the diverse restaurant selection drives their preference.
However, cost-conscious users trade variety for price. Take Adekunle Adeleke, a Glovo super user who briefly switched to Chowdeck for its more expansive selection of vendors. "Once [Chowdeck's] delivery fees increased, I had to reconsider," he told TechCabal. Delivery fees are a popular concern and can cost up to ₦1,000 on some apps, with service fees adding to the pile.
To remain competitive, platforms must find a balance – the right unit economics to ensure they're not losing money on every delivery while giving customers the perception of a good deal. Historically, food delivery companies have subsidised costs, charging users less than the service cost. The extent of these subsidies often depends on the company's funding.
Well-funded companies like Glovo, operating in 7 countries, have raised over $1 billion – over 200 times the amount raised by local competitors like Chowdeck, HeyFood, and FoodCourt combined. Yet, well-funded companies like Bolt Food and Jumia Food have exited the segment, citing a race to the bottom and unsustainable unit economics. The players that have taken their place are innovating around sustainability concerns.
Glovo and Chowdeck have introduced subscription plans to users, offering potential cost savings and encouraging them to place more orders. Glovo Prime, for instance, has a ₦2,000 monthly subscription that helps users save on delivery fees. Chowdeck offers a ₦3,500 monthly plan, ChowPass, that discounts fees from select restaurants.
Despite the feedback, food delivery apps are generally in lockstep with their users – this goldmine of a customer segment happy to spend money consistently so they can be productivity machines. That sort of trade-off is familiar to the ambitious, who understand that being productive is about making marginal changes. So what if they spend 30 to 40% of their income on food delivery apps? It'll ensure they have entertaining New Year's resolutions for 2026.
Anthropic, creator of AI chatbot Claude, finalizes massive funding round, solidifying its position in the AI technology space
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