Nigerian Food Delivery Startup Chowdeck Eyes Pan-African Expansion, Starting with Ghana

Starfolk

Starfolk

February 11, 2025 · 3 min read
Nigerian Food Delivery Startup Chowdeck Eyes Pan-African Expansion, Starting with Ghana

Nigerian food delivery startup Chowdeck is set to embark on an ambitious pan-African expansion, with Ghana as its first international destination. According to sources familiar with the matter, the company plans to launch in Ghana as early as March, marking a significant milestone in its growth trajectory.

Chowdeck, which has reached one million users and processed ₦30 billion in transactions in 2024, aims to establish a strong presence in 52 cities across Nigeria and internationally by the end of the year. The company's vision, as stated by CEO Femi Aluko, is to become the dominant "super app" for ordering anything, anywhere in Africa.

Starting with just 319 users in its first month (October 2021), Chowdeck has rapidly expanded within Nigeria, diversifying its services to include retailers of essential items like pharmaceuticals, shopping mall goods, and market produce. The company has earned a reputation for quick delivery, operating in major Nigerian cities like Lagos, Ibadan, Port Harcourt, and Abuja. In February, it began operations in Owerri, Enugu, and Kaduna, with Lagos remaining its biggest market.

Ghana presents an attractive opportunity for Chowdeck to replicate its Lagos success. However, the company will face a competitive landscape, with established players like Uber Eats and Bolt Food already operating in urban cities like Accra, Tema, and Kumasi.

Ghana's market dynamics are both promising and challenging. The country boasts a growing, tech-savvy urban youth population and a projected food delivery market of $540.1 million by 2029, with a 16.66% annual growth rate. However, Ghana has also seen the exit of other delivery services, including Glovo, which invested nearly $3.7 million in the expansion before exiting in 2024, and Jumia Food, which shuttered its Ghana operations in early 2023 as part of a broader restructuring.

Despite these challenges, Chowdeck is undeterred, with sources close to the business stating that the company wants to "dominate" the African market. The startup's ability to navigate Ghana's complex market dynamics will be crucial to its success, particularly in the face of high taxes, low wages, and high inflation, which have presented ongoing challenges to Ghana's food delivery ecosystem.

Chowdeck did not respond to a request for comments on its expansion plans. As the company prepares to launch in Ghana, it remains to be seen how it will differentiate itself from existing players and overcome the challenges that have plagued other food delivery startups in the region.

One thing is clear, however: Chowdeck's pan-African ambitions are a significant development in the African tech ecosystem, and its success or failure will have far-reaching implications for the industry as a whole. As the company embarks on this exciting new chapter, it will be closely watched by investors, competitors, and customers alike.

Similiar Posts

Copyright © 2024 Starfolk. All rights reserved.