Keeping delivery fees affordable while motivating riders is a constant balancing act for food delivery companies. Quickening inflation and a second major increase in fuel prices on Thursday have further complicated that balance, forcing some strategising at delivery startups.
On Friday, Mano, a food delivery platform, began paying riders a ₦2,000 weekly bonus in addition to their delivery fees and a monthly base salary of ₦47,000, said one driver who attended the town hall meeting.
The company says riders do not have to wait a week to receive said bonus. “The allowance is paid once they meet their target,” Mano said in an email confirming the bonus. “Some riders reach the target multiple times a day.”
The company, which typically charges a flat delivery fee of ₦1,400, is also transitioning to a “dynamic pricing model.”
Glovo, another delivery platform, is also offering riders performance-based incentives. Riders who deliver 550 orders in two months will receive a ₦23,400 bonus for fuel. Anyone who hits the 800-order mark will get a ₦39,000 bonus, one Glovo rider told TechCabal. Those incentives began two months ago, that person said.
“The company also promised to increase delivery fees generally, but no changes have been affected since then,” a Glovo rider said.
Glovo has yet to respond to requests for comments regarding the matter.
Chowdeck has not made any price changes, according to three people at the company.
“₦4,000 used to be enough to fill our fuel tanks, but now it takes about ₦6,000,” a Chowdeck delivery rider who uses a moped told TechCabal. “We have been expecting them to make considerable changes.”
This may be a tough ask for Chowdeck, which, according to two delivery riders, recently increased the fee it pays for long-distance trips (7 km–8 km) by ₦300.
“They increased it from ₦1,500 to ₦1,800. They should increase it to at least ₦2,000,” another Chowdeck rider said.
“The drivers know an increase may not be possible,” a Chowdeck supervisor, who asked not to be named, told TechCabal, hinting at the company’s hesitation to pass the cost on to customers.
Chowdeck has yet to respond to requests for comments.
In Ibadan, Nigeria’s third-largest city, HeyFood, a prominent food delivery startup, is considering a switch to electric bikes.
“We find that riders are spending more time looking for fuel before resuming work, making fewer drivers available for deliveries,” said the company’s CEO, Akinropo Taiwo. “They even close early so they can secure fuel.”
Talk about gig workers transitioning to electric vehicles has become a common theme since 2023. Gig workers who use EVs that have up to 100 km of range on one full charge reportedly save up to 40%–60% on fuel and vehicle maintenance.
In May 2024, Glovo partnered with Nigerian EV manufacturer Siltech to use EV bikes for delivery in some parts of Lagos.
Yet, switching to EVs for Heyfood may be complicated since riders are currently paying off new petrol-powered bikes, which cost around $1,200–$1,700, according to a December report.
With gig workers increasingly pushing for more pay as inflation bites and companies wary about passing on to customers, it leaves the sector between a rock and a hard place.
Editor’s note: This article has been edited to reflect that Mano riders can earn the ₦2,000 bonus multiple times a week.
