Ghana’s growing food delivery tech ecosystem has been growing for the past two years. This is all due to technology such as cell phones and internet access.
With a growing middle class, increased smartphone penetration and a bustling urban population, the demand for convenient, fast and reliable food delivery services is on the rise.
During Traffic ban due to covid-19, Food delivery apps have seen an increase in usage due to the lack of mobility of users who have opted for food delivery to their locations.
In this article, we take a look at the current food delivery ecosystem, including apps, delivery services, and current challenges in the space.
Food applications
Starring local startups that have harnessed technology to revolutionize the way Ghanaians order and receive their meals. These platforms offer a wide range of cuisines, from traditional Ghanaian dishes to international flavors, all available at the tap of an app.
Globo
Globo is a dynamic multi-category delivery services company based in Spain with operations in several African countries including Nigeria and Ghana.
The company began operations in the country in 2021, offering a wide range of services, from food delivery to grocery shopping and even over-the-counter products.
There isn’t much data on the market, but Glovo currently looks like the market leader when it comes to food delivery apps in Ghana. The company doubled down on the Ghanaian market when it pledged €3.5 million in 2021.
Bolt Food
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Bolt Food offers a wide variety of restaurants and shops, allowing users to enjoy their favorite meals and groceries delivered right to their doorstep.
Bolt launched its food delivery operation in the Ghanaian market in 2018. Although the service has struggled in other markets, with Bolt closing its markets in Nigeria and South Africa, the company appears to be strong in Ghana despite macroeconomic challenges of high inflation and fuel prices.
Hubtel
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Hubtel started primarily as a payment app but has opened up its ecosystem to provide food delivery services to its users.
Customers can easily browse menus from a wide range of local restaurants and place orders using a combination of cards and mobile money for payments.
MenuFinder
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Menufinder Africa is an online platform that offers a curated selection of premium restaurants, ensuring that customers can enjoy the best of local and international cuisines right at their doorstep.
The app also features a Food Clubproviding discounts and promotions at a range of restaurants.
Konzoom
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Konzoom is an express grocery delivery service operating in Accra, offering a unique promise of grocery delivery within 60 minutes.
They provide a wide range of products, from fresh fruits and vegetables to beverages, toiletries and even local favorites such as shito sauce.
Knock Knock
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Knock Knock provides users with an online grocery shopping experience in Ghana with its promise of ultra-fast delivery.
The Lebanon-based company started operations in Ghana in 2022.
The Delivery Partners
Investments in logistics infrastructure and partnerships with local restaurants have been key to this growth. In addition, these technology-driven companies contribute to the economy by creating jobs for delivery personnel and providing restaurants with a wider customer base.
Solar Taxi
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SolarTaxi is an innovative company based in Ghana pioneering the use of electric vehicles (EVs) to provide clean, efficient and sustainable transportation solutions for stakeholders
SolarTaxi offers a range of services including electric vehicle transportation, courier delivery and renewable energy solutions. The company partnered with Jumia for logistics purposes in 2021.
Wahu Mobility
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Wahu Mobility is a Ghana-based mobile operator dedicated to helping transport with sustainable fleet solutions tailored to Africa’s last mile.
They offer a rental model of electric bicycles (eBikes), designed and built locally to withstand rough roads. Wahu provides fleet solutions to major mobility platforms such as Bolt and Glovo, helping businesses transition to electric vehicles, save costs and reduce their carbon footprint.
Bucket
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Bucket is a Ghana-based energy company that hopes to reshape the energy landscape in Africa with its state-of-the-art battery network.
The company also offers EV bikes to stakeholders like food delivery companies who can benefit from it Kofa Swap & Go battery network that allows riders to exchange their batteries at designated locations in Ghana.
ShaQ Express
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ShaQ Express is a delivery service platform that doubles as a super app, offering a comprehensive range of services that cater to various daily needs.
The app offers options for delivery, e-commerce, food, home services, pharmacy and bill payments. The company is currently focusing on sustainability, using electric bikes for deliveries to reduce carbon emissions and promote a greener.
Current Challenges
The food delivery ecosystem currently faces a myriad of challenges, most of them macroeconomic.
High inflation
Companies have had to deal with inflation rates of up to 50% in the past two years, which has driven up the cost of operations.
Low wages
According to some food delivery riders, they are woefully compensated for their work. One rider stated that he does approx 9-10 GHC per deliverywith most wages going towards paying for their bikes and fuel.
High taxes
Ghana has had to raise taxes to help shore up a declining economy and this has affected food delivery businesses.
I look forward
The survival of the food delivery system will depend on macroeconomic factors in Ghana in the long term. Currently, high taxes and inflation are major factors in the survival of most of the ecosystem.
In the past, some players such as Jumia Food have shut down due to competition and financial challenges.
Bolt Food has closed its operations in Nigeria and South Africa citing macroeconomic challenges, but has yet to make a statement about its future in Ghana.
We expect the food delivery ecosystem in Ghana to continue to be loss-making, barely making a profit and facing high food and delivery prices until the Ghanaian economy improves in the long term.
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