Chao, a Nigerian startup, helps students quickly and reliably order food, groceries, and medicine delivery to campuses. The company aims to make essential services more accessible by letting people order them online and delivering them quickly.
Gift Akobundu, the company’s founder, a student at the time, struggled to find food after long days at school in 2021, which gave rise to the concept of Chao.
“It was hard to order food from stores quickly because there wasn’t a food delivery service on campus.” “As a software engineer, I started talking to restaurants to learn more about how their businesses work and figure out what it would take to solve the problem for both users and stores,” he told Disrupt Africa.
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Akobundu’s friend and soon-to-be co-founder, Melvin Senne-Aya, agreed to help him build Chao. The two think they have found a significant need for trusted delivery services in underserved areas and on campuses.
Although there are many transportation services in cities, not many focus on meeting the needs of students and people living in rural areas. Bigger delivery services compete with Chao by focusing on big towns. Akobundu said that Chao can fill a need by offering customised services to places that are harder to get to.
Celebrating Startup Wins: Nigeria Chao’s Journey
The firm has grown with revenue and received awards while verifying its target market on a bootstrapped journey. The Wema Bank Hackathon and Grand Summit in 2023 awarded it the e-commerce prize, while Eko Innovation Centre and GDM Group’s Markhack 3.0 this year named it champion.
We are ALX Ventures’ portfolio firm and one of the brightest startups in the Accelerator 2024 class. Since our beta launch, despite challenges, we have scaled Chao into two new communities, with two more planned by Q4 2024. We are forging partnerships and acquiring local food delivery services to improve our offerings, said Akobundu.
“Uptake has been promising, especially on our targeted campuses and communities. Our user base expands to over 3,000 as more individuals discover our ease and reliability. Many consumers have praised our fast shipping and wide selection.
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Chao’s Roadmap to Community Expansion
Chao intends to expand to 12 more communities in the next 24 months. Currently, it maintains a presence in three locations: Redemption City, Babcock University, and the University of Port Harcourt.
According to Akobundu, its primary sources of income are dynamic delivery fees based on distance, shop commissions, and service fees.
“In beta testing over the past year, we’ve handled over NGN70 million (US$44,000) in gross merchandise value, delivered over 25,000 orders, paid out over NGN10 million (US$10,000) in rider payments, and made over NGN17.5 million (US$11,000.”
Chao’s innovative campus delivery method streamlines logistics and sets a new standard for ease and efficiency in Nigeria. By solving common issues and using cutting-edge technology, Chao can transform student and campus delivery management. While expanding and improving its services, the corporation may inspire comparable advances in other regions and sectors. Chao’s success shows the entrepreneurial spirit driving change in Nigeria and abroad and offers a glimpse into smart, agile delivery options.