Foodhive: Pioneering The Business of Food Service Technology
Years ago, when people think of the food service business they thought more of the kiosk, street vendors, and restaurants. But in the most recent years, this notion has been challenged to a large extent, due to the rising need in comfortably, ease and dynamics of the ever evolving technology in the landscape of Nigeria.
Yes, the food service business in Nigeria doesn’t have statistics to point to on its profitability. However, it’s imperative to know that in the United States according to Statista:
- Revenue in the Online Food Delivery segment amounts to US$136,431m in 2020.
- Revenue is expected to show an annual growth rate (CAGR 2020–2024) of 7.5%, resulting in a market volume of US$182,327m by 2024.
- The market’s largest segment is Platform-to-Consumer Delivery with a market volume of US$70,741m in 2020.
- In global comparison, most revenue is generated in China (US$51,514m in 2020).
Be it as it may, that is some mouth watering statistics to be honest. The reality that the most essential needs of man (food, clothing and shelter), cannot be defeated even in the coming generations, is a pointer to the need to focus on boosting a sector that might not be the spotlight of the decade.
So how is an emerging startup preparing to handle this problem and how are they solving this in all ramification?
Food Delivery: The Business Overview
Food delivery business is arguably one of the lucrative businesses in Nigeria today. And this is due to the fact that people rarely have time to their cooking these days, especially the working class. Also, technology is beginning to play a huge role in our everyday lives, and the way we buy food. Most people now prefer to buy food online, as it is more convenient and comfortable than going out to a fast food or road side food vendor/restaurant to do the buying.
Online Food Delivery comprises services which deliver prepared meals and food that was ordered online for direct consumption. The Restaurant-to-Consumer Delivery segment includes the delivery of meals carried out directly by the restaurants. The order may be made via platforms (e.g. Jumia…