Bolt Food has announced that it will be exiting the Nigerian market on December 7, 2023, citing strategic reasons for discontinuing its food delivery operations in the country. The company emphasized the need to optimize resources and enhance overall efficiency as the driving force behind this decision.
Back in March 2021, Bolt had expressed its interest in entering the Nigerian food delivery market, responding to the increased demand for such services during the pandemic. The subsequent launch of Bolt Food in October 2021 aimed to compete with rivals like Jumia Food and Gokada, offering simplified access to food in Lagos and expanding its reach to various areas in April 2023.
Despite the decision to exit the food delivery sector, Bolt remains committed to its other verticals in Nigeria, assuring customers of continued focus on delivering high-quality services. The company is actively collaborating with its couriers and merchants to ensure a smooth transition during this process.
In the dynamic Nigerian food delivery market, characterized by a growing demand for convenience and diverse food options, Bolt Food faced competition from Glovo, Chowdeck, Buyfood, and Jumia Food. Glovo’s recent partnership with Chicken Republic, leading to the termination of affiliations with Jumia Food and Bolt Food, reflects the evolving landscape of the industry.
While the food delivery sector in Nigeria encounters challenges such as managing customer expectations, food handling practices, market price fluctuations, and logistical issues, the persistent trend of Nigerians embracing food delivery services continues.
The industry is projected to experience significant growth, with IMARC Group estimating a market worth of $1,719.4 million by 2028, fueled by a compound annual growth rate (CAGR) of 12.2% from 2023.”
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