Online food delivery as a business category is one I am quite pessimistic about. There are several problems I observe:
- There is a glut of very low paid, unskilled labour available. Such people usually work as security guards, cleaners and so on. People who can afford to order food online would usually have such people around to send to get them food
- The cost of delivery is pretty high. A single delivered meal can cost N300, which is a $2 premium on the meal. Most people will prefer not to pay that
- Food delivery has not previously existed in large scale across Nigeria. In Europe it existed even before the internet came. The internet just made it work better
- The lack of properly structured addresses makes it difficult for delivery people to locate the person to be delivered to - leading to a big and uncomfortable direction explaining hassle on every delivery
- Restaurants will build direct relationships with the users, since they are delivering directly - having a 3rd party in between does not benefit them or the users.