Chowdeck: a Closer Look into the Fast Growth of the Food Delivery Startup 2024

Chowdeck, a food delivery startup, has experienced explosive growth in 2024, attracting attention for its innovative business model and efficient online food delivery services. 

It offers a convenient and efficient way for consumers to enjoy their favorite meals from a variety of restaurants, while also providing restaurants with a platform to expand their reach and increase revenue.

The food delivery industry has also witnessed significant growth, fueled by changing consumer preferences and advancements in technology. 

In this article, we’ll be looking at the key factors driving Chowdeck’s success, its impact on the online food delivery industry, and its plans for the future.

What is Chowdeck?

Chowdeck is a Nigerian technology company that connects restaurants and consumers, providing a wide range of services. It was founded in October 2021, and it has quickly gained attention in the growing online food delivery market within the country.

For consumers, Chowdeck partners with diverse restaurants, from popular chains to local favorites. The user-friendly app allows for easy ordering, tracking, and payment. The food delivery startup also ensures competitive pricing, catering to a wider customer base. Express delivery service guarantees quick and efficient delivery of food, with live order tracking providing transparency. Moreover, Chowdeck offers loyalty programs and multiple payment options, catering to diverse customer preferences.

For restaurants, Chowdeck provides an expanded reach, connecting them with a broader customer base. The company’s efficient delivery logistics system manages the delivery process, allowing restaurants to focus on food preparation. This can lead to increased revenue through online food delivery orders.Chowdeck also offers valuable data and insights on customer preferences and ordering trends.

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What’s the history behind the existence of this online food delivery startup?

Babafemi Aluko, the CEO and co-founder of Chowdeck, contracted COVID-19 on December 31, 2020. He had tested positive for the virus quite late at night, leaving him stranded as he was unable to travel home. On January 1, 2021, while in isolation, he faced challenges finding food delivery options due to the holiday, and eventually had to pay significantly more than the usual rate for a meal.

This experience made him realize that there was a gap in the local food delivery industry in Nigeria. He discovered that while countries like India had efficient delivery systems, making millions of deliveries daily, Nigeria lacked such a system. This fueled his determination to tackle this problem.

Initially, the team approached the issue with a focus on technology, but soon realized that the problem was more operational than technical. They decided to start from scratch, deconstructing the operations before attempting to build again.

They pulled together personal funds, acquired three bikes and riders, and began working closely with two food vendors, Korede Spaghetti and NiFries, to understand the nuances of the delivery process.

Through weekly meetings with the riders, they gained valuable insights that shaped their understanding of the problem. They also realized that their solution had to be efficient and user-friendly.

However, developing the product wasn’t easy; they faced numerous iterations before settling on a version that met their standards. They had to balance their dedication to all parties involved: the riders, the restaurants, and the customers.

With their technical expertise, they built the first version of the app in just three weeks and launched a public beta in October. Since then, they have been continuously learning and improving to better serve their customers.

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What are the core values of this Online Food Delivery Company?

Every successful business must have values and principles that guides its operation to ensure profitability and a smooth service provision to its customers.

Chowdeck has not failed to set these principles guiding its activities in the food delivery market.The core values of Chowdeck include:

• Transparency.
• Insist on Excellence.
• To always Hustle.
• To establish a clear communication gap with its customers.
• To grow, learn and relearn for efficient services.
• To be innovative.
• To show Empathy when need be.
• To take Ownership.

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What is Chowdeck’s Business Model?

Chowdeck’s success is built on a smart business plan that mixes technology, good delivery, and making customers happy. The model uses a network of restaurants and delivery people, all working together to get food to customers quickly and easily.

The key to the strategic growth of this online food delivery startup include:

• Technology Integration
• Efficient Logistics
• Partnership with Restaurants
• Customer Care services
• Expansion into New Markets

Technology Integration: 

Chowdeck has invested heavily in technology, developing an intuitive app that allows users to browse menus, place orders, and track deliveries in real-time. This has made the ordering process more convenient and streamlined.

Efficient Logistics:

Chowdeck has worked hard to make sure their delivery system is efficient. They use special software to plan out when and where to send deliveries. This means food gets to people fast and in good condition, making everyone happy.

Partnership with restaurants:

The food delivery startup has forged partnerships with a wide range of restaurants, offering customers access to their favorite dishes from popular local eateries. This has helped the company attract a diverse customer base and establish a strong brand presence. And also, keeping lots of customers coming back for more.

Customer Care Services:

Chowdeck places a strong emphasis on customer service.They make sure orders are accurate, deliveries are on time, and  they quickly solve any customer issues. This has helped the company build trust and loyalty among its customers.

Expansion into New Markets:

Chowdeck is always looking for new opportunities. They’ve expanded into new areas, taking advantage of the fact that more people are interested in online food delivery services.This growth has helped them become a big player in the industry.

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What Teams Does this Food Delivery Company Incorporate to Ensure Seamless Services?

Chowdeck makes use of six major teams of about 28 workers to ensure that they work effectively, meet consumers’ needs and attain market value.

These teams include:

• Engineering
• Business
• Operations
• Customer success
• Growth and Marketing
• Design

Engineering:

This team collaborates with Product and Design to develop their products using technologies like NodeJS and MySQL for the backend, and React and React Native for the frontend. They focus on speed, efficiency, and translating unique designs into functional experiences for their customers.

 Business:

This team handles restaurant acquisition, finance (reconciliations,merchants and riders payments, salaries and unit economics), and monitors key business metrics. They also set up dashboards for teams.

Operations:

This team recruits, trains, and onboard riders, monitors orders, and coordinates routes for effective order assignment. They also manage rider welfare, performance improvement processes, and enforce operational standards.

Customer Success:

This team manages customer support, resolves issues, and shares feedback for product improvement. They also oversee restaurant operations to ensure quality service.

Growth and Marketing:

This team collaborates with design and engineering to develop products and features, and create communication strategies, positioning, messaging, and marketing programs.

Design:

This team creates product and brand experiences, focusing on both form and function. They embrace empathy and strive to create remarkable experiences.

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What Is the Impact of Chowdeck on the Food Delivery Industry?

Chowdeck’s impact on the food delivery industry has been immense, redefining the landscape and setting new standards for efficiency and customer service. Its success has prompted other players in the industry to innovate and improve their offerings, leading to a more competitive environment where customers benefit from a wider range of choices and improved service quality. 

Through its strategic partnerships with restaurants and independent delivery drivers, Chowdeck has been able to offer a diverse selection of cuisines and quick delivery times, effectively setting itself apart from the competition.

Also, Chowdeck’s emphasis on technology, efficient logistics, and customer service has helped it build trust and loyalty among its customers, further solidifying its position as a market leader. 

Moreover, Chowdeck’s impact on the food delivery industry cannot be understated, and its continued growth and success will likely shape the future of the industry for years to come.

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What are the Challenges this Online Food Delivery startup faces?

Chowdeck, like any online food delivery startup, encounters various challenges on its journey to success. Among these challenges are the rising competition within the industry and the constant need to uphold and surpass high levels of customer satisfaction. 

As the food delivery market becomes increasingly crowded with new entrants and existing players vying to also have a hold, Chowdeck must continuously innovate and differentiate itself to stay ahead of the competition.

This includes refining its services, expanding its reach, and enhancing its brand image to attract and retain customers in a highly competitive landscape.Also, maintaining high levels of customer satisfaction is crucial for Chowdeck’s sustained growth and success.

With customers having high expectations for timely deliveries, accurate orders, and exceptional customer service, Chowdeck must consistently meet and exceed these expectations to retain customer loyalty and positive word-of-mouth referrals.

This entails investing in robust customer support systems, ensuring seamless order fulfillment processes, and promptly addressing any issues or concerns raised by customers.

Despite these challenges, Chowdeck is well-equipped to navigate the competitive landscape and maintain its growth trajectory. The company’s innovative business model, which makes use of technology, efficient logistics, and strategic partnerships, provides a solid foundation for continued success. 

Chowdeck’s unwavering focus on delivering a superior customer experience, coupled with its commitment to addressing emerging market trends and consumer preferences, positions it favorably for sustained growth and market leadership in the dynamic food delivery industry.

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What recent changes were made in the Company?

Femi Aluko, Co-Founder and CEO of Chowdeck, has said there will be a big change in how the company packs its food.Chowdeck is famous for using brown paper bags and stickers, but they are going to stop using them for a few good reasons.

Aluko talked about how they always want to do a good job, but it’s hard to keep using the brown bags and stickers because they want them to always look and work well. Chowdeck’s orders have gone up from 1,000 orders a day in January 2023 to over 12,000 orders a day now.

This means they need more bags and stickers, but it’s not easy to find companies that can do it as well and quickly.They also had a hard time because of things like not having power all the time and the cost of fuel.

To make sure they always have bags and stickers, Chowdeck is going to stop using them as much.

This change will start on January 13, 2024.Chowdeck will let customers choose if they want the old bags and stickers for an extra NGN200 when they order.

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What Strategic partnerships has the online food delivery startup gained?

In August 2023, CEO Femi Aluko of Chowdeck announced that Chicken Republic will be a part of their delivery service’s ecosystem. This partnership aims to strengthen Chicken Republic’s commitment to providing affordable meals to Nigerians, leveraging Chowdeck’s strong logistic operational capacity to make ordering easy and comfortable for customers and the restaurant.

Kofi Abunu, the Managing Director of Food Concepts Plc, expressed his admiration for Chowdeck’s growth and its reputation for delivering great customer experiences consistently.

As a customer-focused brand, they value aligning with partners who prioritize customer satisfaction, especially in tackling the last mile challenge. This partnership is crucial for both companies as they work together to address this issue.

With this partnership, Chowdeck’s customers can now order from over 90 stores, with more expected to join soon. Chicken Republic’s restaurants are spread across various cities, including Lagos, Abuja, Port Harcourt, and Ibadan. Meals can be ordered and delivered easily using the Chowdeck mobile application, which is available on the Web, App Store, and Google Play Store. 

Femi Aluko stated, “Through our partnership with Chicken Republic, we are one step closer to our goal of ensuring that every Nigerian can access our service and enjoy high-quality, affordable meals, regardless of their location in the country.”

Chowdeck is excited about the rapid expansion ahead, particularly in the new cities of Ibadan and Port Harcourt. With 90% of all orders currently delivered in under an average of 24 minutes, Chowdeck’s logistics operations are robust, tried, and trusted.

They are confident that the challenges faced by previous delivery partners will be a thing of the past. They are eager to welcome Chicken Republic to a new, technologically advanced future of logistics and are committed to fulfilling the Chowdeck promise – delivering happiness, one meal at a time.

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FAQs

Conclusion

Chowdeck’s journey from an online food delivery startup to an industry leader is marked by a commitment to innovation, customer satisfaction, and continuous improvement.

Despite facing challenges such as increased competition and the need to maintain high service standards, Chowdeck has maintained its position as a market leader by focusing on its core strengths.

Chowdeck is poised to continue its growth trajectory and set new standards for the food delivery industry, cementing its status as a pioneer and trendsetter in the field.

References

• chowdeck.com – 2022 Chowdeck Technologies
• techcabal.com – Chowdeck Announces Chicken Republic’s Integration Into It’s Ecosystem as a New Restaurant Partner.
• thenews-chronicle.com – Food Delivery Service, Chowdeck Announces Changes In Packaging

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