Angolan-origin grocery delivery startup Mano has made a strategic foray into the bustling food delivery sector of Lagos and Abuja, Nigeria. The company has rolled out a novel service model that allows customers to actively monitor their delivery process, promising efficient delivery services within a 10-kilometer radius from its affiliated restaurant partners.
Initially launched in Nigeria in 2022, Mano’s primary focus was on the delivery of groceries and household appliances from its strategically located dark stores within the states of its operation. Now, the startup is positioning itself to vie for market share with well-established food delivery players like Chowdeck and Glovo.
According to data from Statista, the food delivery market in Nigeria is on a trajectory to amass revenues of $2.01 billion by the year 2024. This segment is forecasted to experience a compound annual growth rate (CAGR) of 13.64% from 2024 to 2029, culminating in a projected market volume of $3.81 billion by the end of 2029.
Mano, despite imposing a relatively steep delivery fee of ₦1,200, is carving out a commendable reputation for itself amidst the heavyweights of the delivery industry. The startup is tackling the formidable challenge of achieving a 15-minute delivery window, yet it maintains that customer satisfaction levels have been high.
In a bid to differentiate itself and enhance service quality, Mano has adopted an innovative aggregation model, a strategy employed by several other successful delivery brands. This approach involves Mano’s personnel conducting thorough inspections of the quality and freshness of products and items before purchase, a step beyond simply relying on the assurances of their restaurant partners. This meticulous attention to detail in their service delivery is part of Mano’s commitment to providing an exceptional experience to its customers.
Amid the intense rivalry within Nigeria’s online food delivery landscape, the grocery company Mano is carving out a niche for itself by placing a strong emphasis on customer service as its key differentiator. However, it’s not alone in its quest for market dominance, as other players in the sector are also stepping up their game.
In a significant move to solidify its presence, Chowdeck, a Nigerian on-demand delivery service, successfully raised $2.5 million in seed funding in April 2024. This financial boost is aimed at fortifying Chowdeck’s competitive edge in the Nigerian market. The previous year, in 2023, Chowdeck had struck exclusive partnerships with prominent brands, including Chicken Republic, Nigeria’s largest Quick Service Restaurant (QSR) brand, and Shoprite. These strategic alliances have been instrumental in driving user growth and reinforcing Chowdeck’s market standing.
Glovo, another major contender in the market, has chosen to innovate through a partnership with Siltech, an electric vehicle (EV) manufacturer. This collaboration involves utilizing Siltech’s EV products and services for Glovo’s delivery operations in select areas of Lagos, Nigeria, showcasing a commitment to sustainability and efficiency.
Contrasting these expansions, 2023 saw the withdrawal of Jumia Food and Bolt Food from the Nigerian online food delivery market. Despite Bolt Food’s efforts to broaden its reach in major cities like Lagos, the company faced economic headwinds, soaring inflation, and relentless competition from established entities such as Jumia Food, Gokada, and Uber Eats, ultimately leading to its exit.
The dynamic nature of Nigeria’s online food delivery sector continues to evolve as companies like Mano, Chowdeck, and Glovo adapt and innovate to meet the demands of consumers and overcome the challenges of operating in a highly competitive environment.
