Contributing editor, Peter Backman, is a long-term foodservice sector guru and founder of theDelivery.World, a platform that connects the delivery sector and makes sense of the myriad changes and challenges that affect the sector across the globe.
While mature Western markets grapple with impending saturation and margin pressures, emerging economies are generating the heat that is driving the growth in global food delivery. From Jakarta’s three-way platform battle to Lagos’ homegrown champions, these markets are delivering growth rates that their counterparts in London or New York can only dream of.
Africa presents a compelling story of local adaptation triumphing over international capital. Where Jumia Food and Bolt Food failed – exiting multiple markets by late 2023 – homegrown players are thriving because they understand that profitability per delivery matters more than growth at any cost.
Nigeria’s Chowdeck has doubled daily deliveries to 40,000 following its $9 million funding round. Its secret is threefold: onboarding local “bukkas” serving traditional Nigerian food; paying riders 1.5–3x the minimum wage; and building custom mapping technology because Google Maps proved insufficiently accurate. Meanwhile, Glovo has helped Nigerian vendors generate ₦71 billion ($42 million) since 2021, with quick commerce GMV surging 76 percent as the platform diversified beyond food.
The lesson is stark. “We don’t subsidise orders,” Chowdeck’s CEO noted. “We’re profitable per delivery. That’s the only way to survive in Nigeria.” This margin discipline contrasts sharply with the approach that sank international players.
Southeast Asia’s food delivery sector is also running red hot in some countries. Vietnam is leading the charge with a scorching 27 percent increase in GMV in 2024, while Indonesia hosts perhaps the region’s most intense competitive battle: GrabFood commands 45–47 percent of the market, GoTo’s GoFood holds 35–38 percent, and ShopeeFood has surged to 15–18 percent.
What makes this competition so heated is that none of these platforms operates as a pure-play delivery service. Grab integrates mobility and fintech, GoTo leverages its Tokopedia e-commerce base, and Shopee extends its retail dominance into food. For restaurants, this creates rich promotional opportunities – but the temperature may be about to change.
A Grab-GoTo mega-merger remains a highly speculated scenario, offering estimated synergies of $300–500 million. Yet Indonesian regulatory approval would demand driver protections and local ownership stakes. For restaurants, consolidation would simplify operations but reduce their negotiating leverage – fewer platforms means less competition for commissions and promotions.
Vietnam has stabilised as a near-duopoly where Grab and ShopeeFood each command roughly 47–48 percent, whilst Thailand remains fragmented and the Philippines, Cambodia, and Myanmar have become Grab monopolies.
What unites these red-hot markets is not just the velocity of their growth but the trajectory of their development too. Each is building delivery infrastructure that leapfrogs traditional retail patterns, often integrating food delivery into broader super-app ecosystems. The online food delivery channel across Middle East and Africa is forecast to grow at 15-20% annually for the next ten years.
The winners will be those who adapt to local conditions and consumer habits, and who are disciplined when it comes to paying attention to every cent – not simply transplanting Western models and burning through venture capital. In emerging markets, the heat is on.
