How to Start Online Food Delivery Business from Home in Nigeria 2023
Are you an entrepreneur with a hot idea and you want to venture into an online food delivery business in Nigeria? Online food delivery is a thriving industry that presents a wealth of opportunities for entrepreneurs who want to start their own online food delivery business from home in Nigeria. With the increasing demand for convenient and quick food delivery services, starting a home-based online food delivery business in Nigeria can be a profitable venture.
In one of our weekly entrepreneurs programs, my team and I interviewed a young entrepreneur, Arafat Olayiwo, the CEO of Rahpty Pastries.
Arafat is just a graduate student from Dec International Secondary School who has been working hard to build her brand. She offer catering services to her social media followers since 2020.
More importantly, we have shared how to start a profitable baking business from home in Nigeria if you’re more concerned about the best food to sell online. Baking might be the best for you based on some important factors, such as your skill set and investment budget.
In this blog post, you’re going to discover how to start an online food delivery business from home in Nigeria. We would also answer one of the most frequently asked questions: How much does it cost to start a delivery business in Nigeria?
Read Also: Business to Start with 500k in Nigeria without Extra Expenses
What food is easy to sell to make money in Nigeria?
According to Small Business Chron, the baking industry generates more than $30 billion annually. Baked goods have become a tone of the town for special events, making them popular year round. Selling baked goods can open a lot of other opportunities for your online food delivery business from home in Nigeria.
You can start selling baked goods like bread, cookies, cakes, pastries, or pies. Despite the fact that baked goods are highly in demand in Nigeria, they’re also cost effective in terms of production and distribution.
How much does it cost to start an online food delivery business from home in Nigeria?
With a minimum capital of N120,000 you can start a CAC accredited food delivery business in Nigeria. While you leverage logistics for online delivery whenever a customer patronizes your business. Meanwhile, you don’t have to purchase dispatch vehicles when starting out as a beginner.
Location is another factor to consider when setting up your food delivery business from home. A metropolitan area with a high profile record is the best place to establish your businesss.
As you grow your customers base as an online food vendor, you can expand your audience targeting and scale your food delivery services.
7 easy steps to start online food delivery business from home in Nigeria
After knowing the easiest food to sell online and the start-up capital. Below are the steps to set up a profitable food delivery business in Nigeria:
1. Create a brand name and logo for your food delivery business
Brand name is also called a company name while logo is a unique design usually with a unique pattern, colors and fonts that represents your brand identity. A brand name and logo have a big influence on your online food delivery business, especially if you want to stand out from the crowd and you want your target audience to perceive the value of your food delivery business from home in Nigeria.
Your brand name and logo should represent the type of business you do. For instance, Chicken Republic is one of the big brands that are into the food delivery business from home in Nigeria. Their brand name and logo defines the food services they offer to their customers. As an online vendor, don’t use a logo that represents a block industry.
2. Register your business name with CAC
The second step is to register your business with the Corporate Affairs Commission (CAC) to avoid government sanctions and future regrets. Imagine after running your food delivery business for 2 years in Lagos with constant orders and delivery.
Customers already know your brand on social media but unfortunately, you find out that you can’t register your business name with CAC because someone else in Kano has registered the brand name with the Corporate Affairs Commission.
To avoid such a scenario, I highly suggest you should process your CAC registration prior to establishing your food delivery business in Nigeria.
Contact any business registration consultants for proper guidelines and requirements for registering a business in Nigeria. If you need my assistance for your CAC registration, you reach out to me on WhatsApp via: 08069830560.
3. Get a license for your food delivery business
A lot of aspiring entrepreneurs used to ask questions like “do you need a license to sell food online?” If you’re one of them, then my answer to you is, YES, you need a license to cook meals and sell online from home. When it comes to food or any intake, there are some regulatory bodies in charge of issuing licenses from NAFDAC under the federal ministry of health.
Get a Hazard Analysis and Critical Control Point (HACCP) certificate. It’s relatively free or very cheap. When you put all these in place, flaunt it to your potential customers to let them know that you care about their health and that you run a legal and registered business in Nigeria.
4. Have business plan for your online food delivery business from home in Nigeria
A business plan will guide you to structure your business, raise funding and plan out the growth of your food delivery business in order to improve your chances of success. It’s a living document that should be updated annually as your brand grows and changes subsequently.
The best way to come up with a good business plan is to conduct a SWOT analysis for food and get insights on your strengths, weaknesses, opportunities, and threats.
This way, you can have a comprehensive understanding of the market, position your online food delivery business and make informed decisions.
Your business plan should include cash flow statements, financial statements, management, competitive strategies, and revenue model of the food business along with investment strategy.
5. Set your price and online payment Method
Since the rise of fintech startups in Nigeria, a lot of microfinance banks offer payment solutions to online entrepreneurs, food vendors and digital marketers. Small business owners have adapted the use of mobile banking applications like Opay, Kuda, Chipper cash, etc. to send and receive money online without hassle.
Customers can pay on delivery or transfer funds via online mobile banking app. There is a flat rate fixed mostly for the delivery of food to different locations, you can also model your own price so as to be able to survive the competition.
6. Partner with a logistics company for your online food delivery
A transportation model for online food delivery business from home in Nigeria includes bicycles, motorcycles, and minivans for long-distance.
In this post here, I shared some benefits of the logistics business in Nigeria. Asides from its profitability, logistics and courier makes online food delivery super easy for both vendors and customers.
You don’t have to purchase your own vehicles. You can seal a partnership deal with trusted logistics companies in Nigeria like FedEx, RedStar Express, Gig Logistics and many more.
Delivery charges in Nigeria are the biggest obstacle to growing online sales in 2023. This involves the entire eCommerce logistics industry and online food delivery business in Nigeria is no exception.
Customers usually expect free delivery and online food vendors have to oblige.
Most of the time, a vendor either covers the delivery costs or “hides” them in the cost of the product. However, there are other strategies to offer free delivery to your customers. This is the result of continuous optimization of your entire food supply chain in Nigeria.
7. Advertising and Marketing
After laying all the building blocks for starting an online food delivery business, the final step is marketing and advertising. Use the tips below as a guide for your online food delivery business from home in Nigeria:
Develop a strong online presence: First of all, create a website, have a social media presence on platforms such as Facebook, Instagram, Twitter, and LinkedIn. Make sure that your online presence accurately represents your brand, and use high-quality images and videos to showcase your food offerings.
Offer Incentives: Offer discounts and promotions to customers who place their first order, refer new customers, or order regularly. These incentives can help to attract new customers and encourage repeat business.
Utilize Influencer Marketing: Partner with popular food bloggers and influencers in Nigeria to promote your business and reach a wider audience. This can help to build trust with your potential customers.
Leverage Local SEO: Consider optimizing your website and social media profiles for local search terms, such as “online food delivery in Lagos” or “best food delivery in Abuja.” This will make it easier for customers in specific cities to find your business when searching for food delivery options.
Utilize WhatsApp Marketing: Collect WhatsApp numbers from customers who place an order on your website. Automate your WhatsApp marketing by using the numbers to send regular updates and promotions to customers with their consent.
Partner with Local Restaurants: You can also offer their menu items through your online food delivery platform. This will give customers more options and help to build a reputation as a comprehensive food delivery service.
Advertise on Food Delivery Apps: Consider advertising your business on popular food delivery apps such as Jumia Food and OrderUp. This will help you reach a large audience of potential customers who are actively searching for food delivery options.
Offer High-Quality Customer Service: Make sure that your customer service is fast, friendly, and efficient. Respond promptly to customer inquiries and feedback, and work to resolve any issues as quickly as possible.
By following these tips, you can build a strong marketing and advertising strategy for your online food delivery business in Nigeria and reach more customers.
My final thoughts on online food delivery business in Nigeria
It is essential to conduct thorough market research and to develop a solid business plan to ensure the success of your venture. From sourcing ingredients and preparing meals to building a website and creating an online presence, there is a lot of work involved in starting an online food delivery business from home in Nigeria.
But with determination, hard work, and a willingness to learn, you can turn your passion for cooking into a profitable business that can provide you with financial stability and independence.
In conclusion, the online food delivery business in Nigeria is an exciting opportunity for entrepreneurs who are willing to put in the time and effort required to build a successful business.
So, if you’re looking for a flexible and rewarding way to turn your love for cooking into a profitable business, use these 7 easy steps to start your own online food delivery business from home in Nigeria.