Leading Nigerian food delivery startup Chowdeck has announced the layoff of 86 contract staff, following major operational optimizations aimed at improving efficiency. This move comes as the company shifts focus toward automation and streamlined delivery operations, reducing its reliance on manual processes.
Chowdeck’s Growth & Workforce Changes
Over the past year, Chowdeck’s operations team expanded sixfold, from 20 employees in January 2024 to 120 in January 2025. However, CEO Femi Aluko explained that this level of staffing was unsustainable, given the company’s aggressive expansion plans for 2025.
“Last year, we hired many contract employees to support our fast growth. In the past two months, we’ve optimized processes, reducing the need for as many contract workers,” Aluko stated.
Despite the layoffs, no full-time employees were affected. To support affected workers, Chowdeck is offering a three-month severance package, health insurance, and career transition assistance.
Operational Efficiency Leads to Faster Deliveries
Chowdeck’s optimization efforts have enhanced delivery speeds, reducing average delivery times from 41 minutes to 33 minutes. One example of improved efficiency is a team that previously required 24 people but can now operate effectively with just two staff members.
Ghana Expansion & Future Growth
Chowdeck’s expansion continues, with operations launching in Kaduna and Owerri in January 2025. Now, the startup is gearing up for its first international expansion into Ghana, with a beta launch in Accra next week.
– A country manager for Ghana has already been appointed.
– Chowdeck will maintain a lean team, leveraging its improved operational efficiency.
– Expansion to other Ghanaian cities will depend on performance in Accra.
What’s Next for Chowdeck?
After securing $2.5 million in seed funding in 2024, Chowdeck has continued rapid growth, surpassing 10 million total deliveries—with six million occurring in the last nine months alone.
With increased efficiency and international expansion, Chowdeck is positioning itself as a leading player in Africa’s growing food delivery market.
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