Building a Local Food Delivery Business Beyond the Major Hubs

Trazo, formerly known as OliliFood, has carved a niche in Nigeria’s food delivery market by serving smaller cities like Asaba and Warri. Now, after processing over 120,000 orders and generating ₦2 billion ($1.5 million) in GMV, the startup is setting its sights on Lagos and Abuja.

The journey began in 2019 when founder Ikechukwu Nweze noticed a gap in online food ordering services for underserved markets. While major players focused on Lagos and Abuja, cities like Asaba were largely ignored. With a team of software developer co-founders, Nweze launched OliliFood with just two vendors and riders.

The timing proved challenging as the COVID-19 lockdown hit weeks after launch. Yet, this unexpected crisis accelerated adoption as restaurants pivoted to home deliveries. The startup expanded into Warri in 2020 and continued operating through Nigeria’s economic challenges by diversifying its revenue streams with ventures like Vent Africa (crypto/fintech) and Hizo (foreign exchange).

Adapting to Economic Realities

As inflation surged and operational costs rose—motorcycle prices more than tripled after 2023—Trazo adopted a hybrid rider model combining in-house staff with third-party logistics. This approach addressed issues of riders using company resources for personal errands while ensuring timely deliveries.

Scaling Up After Six Years

With roughly 500 monthly active customers and a 20-rider network, Trazo is now preparing to enter Lagos and Abuja by Q1 2027. This expansion will place the startup directly against established players like Glovo, Chowdeck, and Swoop in Lagos, as well as Heyfood in Abuja.

While the scale gap presents a significant challenge—Glovo alone delivered 38 million items in Nigeria last year with over 2,000 active riders—Trazo’s experience in underserved markets has equipped it with resilience and adaptability. The company aims to leverage its hyperlocal expertise while expanding its reach across Nigeria’s major cities.