Eastern Africa is a region with a diverse culinary culture, ranging from Ethiopian spicy stews to Tanzanian grilled meats. In recent years, the online food delivery market has been rapidly growing in the region, providing customers with the convenience of ordering their favorite dishes from the comfort of their own homes.
Customer preferences: Customers in Eastern Africa are increasingly turning to online food delivery services due to the convenience and time-saving benefits they offer. With busy work schedules and traffic congestion in urban areas, customers are looking for ways to save time and avoid the hassle of going out to eat. Additionally, the COVID-19 pandemic has accelerated the adoption of online food delivery services as customers look for safer ways to order food.
Trends in the market: Kenya and Uganda have emerged as the leading markets for online food delivery in Eastern Africa. The market is dominated by local players such as Jumia Food, Glovo, and Uber Eats, with international players such as Deliveroo and Foodpanda yet to make significant inroads. One of the major trends in the market is the increasing popularity of healthy and organic foods, with many customers opting for vegetarian and vegan options.
Local special circumstances: The online food delivery market in Eastern Africa is characterized by a highly competitive and fragmented landscape. Many local players have entered the market, offering a range of services from food delivery to grocery shopping. Additionally, the lack of infrastructure and logistical challenges in some areas has made it difficult for companies to expand their operations beyond major urban centers.
Underlying macroeconomic factors: The growth of the online food delivery market in Eastern Africa is being driven by a number of underlying macroeconomic factors. These include the rapid urbanization of the region, the growing middle class, and the increasing penetration of smartphones and internet connectivity. However, challenges such as high data costs and low levels of financial inclusion continue to limit the growth potential of the market.
Data coverage:
The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.Modeling approach / Market size:
Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.Additional notes:
The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.
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