Chowdeck, one of Nigeria’s fastest-growing food delivery startups, has laid off 68% of its contract workforce, 86 employees, following operational improvements aimed at scaling efficiency and reducing reliance on manual processes. The move coincides with its ambitious expansion strategy, including a planned launch in Ghana next week, as the company seeks to cement its position as a pan-African “super app”.
CEO Femi Aluko attributed the staff reductions to advancements in automation and process optimization over the past two months. Tasks previously requiring 24 employees now need just two, while average delivery times improved from 41 to 33 minutes. The layoffs affected only contract staff, with impacted workers receiving three months’ salary, health insurance coverage, and job transition support. Aluko emphasized the cuts reflect sustainable growth planning rather than financial distress, noting the operations team had ballooned from 20 to 120 between January 2024 and January 2025.
The restructuring follows a period of explosive growth. Chowdeck surpassed 10 million total deliveries in March 2025, with 60% (6 million) completed in the prior nine months. Its app dominated Nigeria’s food delivery sector, ranking first in downloads as of February 2025. A $2.5 million seed round in April 2024, backed by Y Combinator and Rappi co-founders, enabled geographic and service diversification. Beyond restaurants, the platform now delivers pharmaceuticals, groceries, and mall goods across 12 Nigerian cities, supported by 10,000 riders.
Chowdeck’s Accra debut marks its first foray beyond Nigeria, leveraging streamlined processes that cut new city launch timelines from three months to one week. Ghana’s food delivery market, projected to hit $540 million by 2029, offers growth potential but presents challenges. Competitors like Glovo and Bolt Food already operate in major cities, while infrastructure hurdles contributed to past exits by other delivery firms. The company plans a lean Ghana team, initially focusing solely on Accra to replicate its city-centric Nigerian model.
Nigeria’s online food delivery sector, forecast to generate $3.16 billion in 2025 revenue, remains Chowdeck’s core market. However, rivals like FoodCourt and Jumia Food vie for dominance, while cross-border players like Uber Eats maintain regional footprints. Analysts suggest Chowdeck’s hyperlocal focus, curating Nigerian cuisine and partnering with informal vendors, could differentiate it in new markets. Yet scaling this model internationally requires navigating varied consumer preferences and logistical ecosystems.
As Chowdeck balances workforce optimization against fivefold growth targets for 2025, its ability to sustain delivery speed and service quality during rapid expansion will likely determine its super app aspirations. The Ghana launch, now imminent, serves as the first test of whether its Lagos-honed playbook translates across African borders.
