- Heyfood is focusing on Abuja and Benin, opting to bypass the highly competitive and costly Lagos market for now.
- The startup aims to capitalise on the growing demand for food delivery services in less saturated markets like Abuja and Benin.
- By expanding in cities with fewer competitors, Heyfood is prioritising gradual, sustainable growth over rapid, risky expansion.
- While avoiding Lagos for the time being, Heyfood continues to monitor the market for potential future opportunities.
Heyfood, a food delivery startup backed by Y Combinator, has announced plans to expand its operations to Abuja and Benin, bypassing the competitive Lagos market. The company, which has made significant strides in Nigeria’s food tech industry, has focused on less saturated markets where it believes it can grow more effectively.
The decision to avoid Lagos, Nigeria’s largest city, comes as a strategic move to avoid the intense competition and high operational costs that have proven challenging for other food delivery services. Instead, Heyfood aims to establish itself in Abuja, the nation’s capital, and Benin, a growing city in southern Nigeria, where the demand for food delivery services is rising but remains underserved.
Heyfood’s business model relies on connecting local restaurants with customers through its app, offering delivery and pickup services. It has garnered attention for its user-friendly interface and reliable service, attributes that have helped it gain a loyal customer base in the cities it already operates.
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By expanding to Abuja and Benin, Heyfood hopes to tap into the rising middle-class population and the increasing demand for convenience. This move also aligns with the company’s strategy to expand gradually, prioritising sustainability over rapid, risky growth.
A spokesperson for Heyfood stated that the company’s decision to avoid Lagos is not permanent but reflects their current focus on establishing a strong presence in other Nigerian cities first. The company will continue to monitor the Lagos market for future opportunities, but for now, its sights are set on more manageable environments.
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Heyfood’s Y Combinator backing has provided it with the financial support and expertise needed to scale effectively, and the expansion into new markets represents a significant step in its growth journey.
