Chowdeck, a popular food delivery startup, is making changes to its operations by letting go of 86 contract staff members. This decision comes after the company optimized its rider and restaurant operations to improve efficiency. According to Chowdeck CEO Femi Aluko, the startup’s operations team has grown significantly over the past year, from 20 members in January 2024 to 120 members in January 2025.
The rapid growth of the operations team was necessary to support Chowdeck’s expansion. However, Aluko realized that the current staff strength was unsustainable given the company’s growth projections for 2025. In order to streamline operations and reduce reliance on manual processes, Chowdeck has implemented optimizations that have resulted in the need for fewer contract employees.
Aluko emphasized that the decision to let go of contract staff was not due to financial troubles but rather a strategic move to align with the company’s growth goals. The optimizations implemented by Chowdeck have been successful in improving delivery times, with a team that previously required 24 people now running efficiently with just two. Additionally, average delivery times have been reduced from 41 minutes to 33 minutes.
The affected contract employees were notified of the changes and will receive a severance package consisting of three months’ salary and health insurance. Chowdeck has also committed to assisting these employees in transitioning to new roles outside of the company. It is important to note that no full-time employees are impacted by this development.
Despite the workforce changes, Chowdeck continues to experience rapid growth and recently reached a milestone of 10 million deliveries. The company is expanding its operations to new cities, with launches in Kaduna and Owerri in Nigeria, as well as an upcoming beta launch in Ghana. The company’s operational improvements have enabled it to accelerate its expansion plans and launch in new cities more quickly.
Chowdeck’s strategy focuses on launching in viable cities, with the initial launch in Ghana limited to the capital city of Accra. The company aims to expand to other cities across Africa based on the success of its product in specific markets. The operational optimizations implemented by Chowdeck have not only improved delivery times but have also streamlined the process of launching in new cities. Previously taking three months, the company can now launch in a new city in just a week.
Overall, Chowdeck’s commitment to operational efficiency and strategic growth planning positions it for continued success in the competitive food delivery market. The company’s ability to adapt and optimize its operations will likely contribute to its expansion and impact in the African food delivery industry.
