Bolt Food is shutting down Nigeria and South Africa operations

Bolt Food, the online food-ordering arm of ride-hailing company Bolt, is closing down its operations in Nigeria and South Africa.

Nigerian technology publication TechCabal reports that the Estonian company which launched food delivery services in the West African country in October 2021 will cease operations on December 7.

In South Africa meanwhile, Bolt Food will stop operating on December 8.

The company said it is pulling out of two of Africa’s largest economies because of strategic reasons as it seeks to streamline its resources and maximise efficiency.

It comes in the backdrop of an increase in turnover in recent months despite operational losses.

According to the Estonian public broadcaster ERR, Bolt reported losses of €547.2 million for 2021 (Ksh.89 billion at current rates), though its turnover rose by 126 per cent.

In 2022, the company’s financials indicate that it experienced an 11 per cent decrease in operating losses and an improvement in the operating profit margin.

About 80 per cent of Bolt’s sales revenue last year came from driving services, followed by 10 per cent from rentals, with just nine per cent coming from food delivery.

Bolt Food operates in 16 countries and 33 cities across the world. It was competing with the likes of Glovo, UberEats and Jumia Food in South Africa, all of which are in Nigeria.