OyaNow, a Nigerian food delivery startup launched in 2017, expects to break even by the first quarter of 2026. Founder Abbas Dayekh shared this projection, noting that the company achieved this milestone by shifting its focus from the general public to high-income customers. This new direction sets OyaNow apart from former rivals like Jumia Food, Bolt Food, and Uber Eats, which exited the market due to rising losses and unsustainable business models.
Nigeria’s food delivery market, worth over $1 million in 2024, continues to face pressure to turn a profit. While platforms like Chowdeck, HeyFood, and FoodCourt say they earn from each order, these earnings often fall short of covering their full business costs.
OyaNow now targets wealthier users who care more about convenience and quality than discounts. According to Dayekh, price-sensitive customers often jump between apps and don’t stick around long enough to recover marketing costs. In contrast, high-spending users stay loyal when they receive premium service.
“I had to make a bold decision to serve high-income users,” Dayekh told TechCabal.
Though OyaNow’s app remains open to everyone, the brand now focuses its promotions and service delivery on richer consumers.
Busola Akin-Olawore of Versa Research believes discount-driven customers are not ideal for long-term success. She warns that offering low prices does not guarantee lasting profits in food delivery.
Startups like HeyFood agree. The Y Combinator-backed company spends less than 5% of its marketing budget on discounts. It focuses on working-class professionals in cities like Ibadan, encouraging them to outsource errands and food orders.
OyaNow Expands Into Other On-Demand Services
To boost revenue, OyaNow now offers more than food delivery. The company recently announced “Oya Concierge,” a WhatsApp-based service that handles logistics, laundry, car rentals, and errands. The platform also connects users to trusted handymen and service providers.
Dayekh admitted that OyaNow serves fewer users than competitors. The platform has over 50,000 users, Chowdeck has 500,000, Glovo has up to 700,000, and FoodCourt boasts 100,000. Despite this, Dayekh insists OyaNow leads among wealthy customers, pointing to top-tier partnerships and higher spending per order.
On average, OyaNow users spend ₦25,000 ($15.56) per order—far more than the ₦5,000–₦8,000 competitors earn. OyaNow charges ₦1,800 ($1.12) for the first 3 km of delivery and ₦200 ($0.12) per extra km. In contrast, other platforms charge between ₦500 and ₦1,000 ($0.31–$0.62) for short-distance orders.
OyaNow has also outlived most major competitors. Dayekh launched the startup after a frustrating experience with Jumia Food and saw an opportunity in Nigeria’s underdeveloped logistics space. He built the company without outside investors, relying on personal funds and friends. This limited OyaNow’s growth but gave it more freedom.
During the COVID-19 lockdowns, demand for delivery spiked. OyaNow grew 202% in 2020 and earned $344,000 in revenue. A major African payments company showed interest in acquiring OyaNow in 2021, but the deal collapsed due to currency issues, inflation, and falling investor interest in risky startups.
After hitting a wall, Dayekh stepped back from the business in 2022, and growth stalled. Shareholders wanted out, and OyaNow lost momentum. Dayekh later returned, bought back their shares, and began rebuilding the business.
“That year gave me the clarity to fix things,” he said.
He ended all heavy discounts, free delivery, and unsustainable growth tactics. This shift brought OyaNow close to breaking even.
Today, OyaNow operates with about 80 full-time staff, including in-house delivery riders. The company works with extra freelance riders during busy periods, scaling up to 140 when needed. Instead of spending big on ads, OyaNow promotes its services through cost-effective channels. In November 2024, it launched a podcast called OyaGistme to connect with users and share business insights.
OyaNow is betting on a long-term strategy. The team believes that by focusing on a niche market and avoiding debt, it can survive market shifts.
“I’m sticking with this because I know the market will change—and when it does, we’ll be ready,” Dayekh said.
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