How to Start a Food Delivery Business in Nigeria: The Ultimate Guide

Whether it's Lagos, Ibadan, or Abuja, the way Nigerians eat is changing. The demand for convenient, app-based food delivery has exploded, and savvy entrepreneurs are taking notice. The success of pioneers like Chowdeck has proven that there is a massive appetite for this service.

But while the opportunity is huge, the path to success is paved with logistical challenges. A great idea is not enough. You need a solid plan, a deep understanding of the market, and the right technology to power your operations.

If you're wondering how to start a food delivery business in Nigeria, you're in the right place. This ultimate guide will walk you through the essential steps, from concept to your first delivery.

6 Steps to Start a Food Delivery Business in Nigeria

Step 1: Define Your Business Model and Niche

Food delivery is a broad term. Your first step is to decide exactly what kind you'll be.

• Restaurant Aggregator (Like Jumia Food/Chowdeck): You build a platform that lists multiple restaurants, and you handle the delivery for all of them. This model has high potential but requires significant tech investment and sales efforts to sign up partners.
• Single-Brand Delivery (The Domino's Pizza Model): You have your kitchen or partner with one ghost kitchen, and you only deliver your food. This gives you full control over the brand and food quality.
• Niche Delivery: Focus on a specific category, like healthy meals, baked goods, local soups, or even grocery delivery. A niche can help you stand out in a crowded market.

Step 2: Handle the Legal & Regulatory Hurdles

Don't skip this step. Operating legally is crucial for building a sustainable business.

• Business Registration: Register your business name with the Corporate Affairs Commission (CAC).
• Food Handling & Safety Permits: If you're handling the food yourself, you will need certifications from relevant health authorities like NAFDAC and local government health departments to ensure you meet food safety standards.
• Insurance: Get Goods-in-Transit insurance to cover the food and Comprehensive Insurance for your delivery vehicles.

Step 3: Choose Your Delivery Model

How will you physically get the food to the customer?

• In-House Fleet: You buy your delivery bikes and hire your own riders. This gives you maximum control over the customer experience and driver training, but requires a higher upfront investment.
• Outsourced / 3PL Model: You partner with existing courier companies to handle your deliveries. This is faster to set up and requires less capital, but you have less control over the delivery process. In that case, it is important that you know how to choose the right courier service.
• Hybrid Model: A mix of both. Use your riders for core areas and outsource for peak times or wider zones.

Step 4: Determine Your Technology Stack

This is the central nervous system of your entire business. Trying to manage a food delivery service with WhatsApp and phone calls is a guaranteed path to failure. You need:

• An Ordering Platform: A user-friendly website or mobile app where customers can view menus, place orders, and pay.
• A Dispatch & Food Delivery Software: This is the engine room. This is the software that receives the order, assigns it to the best available rider, optimizes the route, and provides real-time tracking for you and the customer.

This is the core of effective restaurant delivery management and the single most important technology decision you will make.

Step 5: Source Your Equipment and Riders

• Equipment: You'll need insulated delivery boxes to keep food at the right temperature, smartphones for every rider, and branded gear like helmets and jackets.
• Riders: Look for experienced riders with a good knowledge of the local area and a professional attitude. Ensure they have valid riders' permits.

Step 6: Marketing & Launch

Now it's time to get the word out.

• For Aggregators: Your first marketing goal is to sign up quality restaurant partners.
• For All Models: Use social media (especially Instagram), local food bloggers, and targeted digital ads to reach your ideal customers. You can handle this in-house or partner with a marketing agency like Edens Digital. Regardless, offer attractive launch promotions to encourage first-time orders.

Your Recipe for Success

Starting a food delivery business in Nigeria is a challenging but incredibly rewarding venture. Success hinges on more than just good food; it requires operational excellence.

Ready to build the next big thing in food delivery?

Dellioo provides the powerful dispatch, routing, and tracking software you need to manage your entire operation. Schedule a free demo to see how we can power your launch.