Gokada, a Nigerian startup, has unveiled what has been dubbed a "super app" that will grant customers greater access to e-commerce, food delivery, and ride hailing services. The acclaimed online ordering software for last-mile courier solutions is expanding its customer base beyond people who require motorcycle and taxi transportation.
Gokada—which secured US$5.3 million in Series A funding in 2019— is paving the way for other companies to broaden their food delivery services. Nigeria's largest delivery company confirmed the deal after crossing USD$100 million in annualized transaction value.
The news has emerged following the unfortunate death of the company's founder Fahim Saleh. A recent NIPOST license acquisition, which allows for cross-country courier and logistics services, will surely assist Gokada in executing its expansion mission.
More than 30,000 Nigerian businesses utilize Gokada's delivery services to satisfy their customer base. Established in 2018, the innovative restaurant tech app has since matured into a pioneer in last-mile e-commerce fulfillment solutions, food delivery, and parcel delivery.
Reports state that, within the last six months, Gokada has increased its volume by more than three times. Moreover, the last 12 months saw the leading software company complete 1 million+ e-commerce and food delivery orders; likely stimulated by the coronavirus pandemic.
"The e-commerce and delivery market in Nigeria is growing at an exponential rate and will be worth more than US$20 billion over the next few years. I experienced the same kind of growth in India when I was with Zomato," said Gokada's chief executive officer (CEO), Nikhil Goel.
"Much like in India and our counterparts in other emerging markets, Gokada is building a transport infrastructure from the bottom up, using well-trained riders, powered by technology, to connect businesses large and small with a consumer base in its millions. This launch is core to our objective of positioning Gokada at the centre of Nigeria's e-commerce and delivery revolution," Goel continued.
Moving forwards, Gokada plans to bolster its existing customer base in Lagos to serve various Nigerian cities. Examples of some cities included in the company's "super app" plans are Abuja, Ibadan, Port Harcourt and Ogun.
Food Delivery Services are Influencing Other Industries
With no end in sight for the coronavirus pandemic, consumers in various avenues are quickly shifting their buying behaviors; so as to avoid social contact and prevent contracting the respiratory virus. To put things into perspective, the four top U.S. food delivery applications—Door Dash, Uber Eats, GrubHub and Postmates—saw revenues surge by $3 billion during the second and third quarters of 2020, when the first lockdowns were imposed.
The online restaurant revolution has sparked a trend for numerous other mainstream industries that manufacture, sell, or provide services, such as cybersecurity, e-commerce, at-home fitness, gaming, home improvement, and healthcare. Route optimization integration means that businesses can provide faster and cheaper delivery. Plus, employing a select number of drivers means that food delivery is a sustainable choice.
Another prime example of an industry that is capitalizing on delivery is the legal cannabis industry, which generated sales of over $17 billion in 2020 by adapting to the "new norm". In October of last year, a $14 million Series A was raised by San Francisco-based delivery management software company, Onfleet, to serve increased cannabis consumer demand. Throughout 2020, the company doubled its revenue thanks to pandemic-inspired orders.
The Global Online Food Delivery Market is Flourishing
On a global scale, the online food delivery services market is predicted to inflate at a compound annual growth rate (CAGR) of 10.3% between 2020 and 2021. This is according to the "Online Food Delivery Services Global Market Report 2021: COVID-19 Growth and Change to 2030" report, which was recently included in ResearchAndMarkets.com's offering.
Last year, the worldwide market was valued at $115.07 billion in 2020. The analysis foresees the market valuation surging to $126.91 billion in 2021. Moreover, by the year 2025, the online food delivery services market looks set to top $192.16 billion at an estimated CAGR of 11%.
Analysts attribute the growth of food delivery services to the fact that companies are changing their usual business operations amid COVID-19; in the hopes of staying afloat and recovering financially.
Doordash, Deliveroo, Domino's Pizza, FoodPanda, JustEat, Swiggy, UberEats, and Zomato are some other notable examples of major players specializing in the online food delivery services space.