₦2,000 weekly bonus: Food delivery startups get creative as riders ask for more pay

 

Keeping delivery fees affordable while motivating riders is a constant balancing act for food delivery companies. Quickening inflation and a second major increase in fuel prices on Thursday have further complicated that balance, forcing some strategising at delivery startups. 

On Friday, Mano, a food delivery platform, began paying riders a ₦2,000 weekly bonus in addition to their delivery fees and a monthly base salary of ₦47,000, said one driver who attended the town hall meeting. 

The company says riders do not have to wait a week to receive said bonus. “The allowance is paid once they meet their target,” Mano said in an email confirming the bonus. “Some riders reach the target multiple times a day.”

The company, which typically charges a flat delivery fee of ₦1,400, is also transitioning to a “dynamic pricing model.”

Glovo, another delivery platform, is also offering riders performance-based incentives.  Riders who deliver 550 orders in two months will receive a ₦23,400 bonus for fuel.  Anyone who hits the 800-order mark will get a ₦39,000 bonus, one Glovo rider told TechCabal. Those incentives began two months ago, that person said. 

“The company also promised to increase delivery fees generally, but no changes have been affected since then,” a Glovo rider said. 

Glovo has yet to respond to requests for comments regarding the matter.

Chowdeck has not made any price changes, according to three people at the company. 

“₦4,000 used to be enough to fill our fuel tanks, but now it takes about ₦6,000,” a Chowdeck delivery rider who uses a moped told TechCabal.  “We have been expecting them to make considerable changes.” 

This may be a tough ask for Chowdeck, which, according to two delivery riders, recently increased the fee it pays for long-distance trips (7 km–8 km) by ₦300. 

“They increased it from ₦1,500 to ₦1,800. They should increase it to at least ₦2,000,” another Chowdeck rider said.  

“The drivers know an increase may not be possible,” a Chowdeck supervisor, who asked not to be named, told TechCabal, hinting at the company’s hesitation to pass the cost on to customers.

Chowdeck has yet to respond to requests for comments.

In Ibadan, Nigeria’s third-largest city, HeyFood, a prominent food delivery startup, is considering a switch to electric bikes.

 “We find that riders are spending more time looking for fuel before resuming work, making fewer drivers available for deliveries,” said the company’s CEO, Akinropo Taiwo. “They even close early so they can secure fuel.”

Talk about gig workers transitioning to electric vehicles has become a common theme since 2023. Gig workers who use EVs that have up to 100 km of range on one full charge reportedly save up to 40%–60% on fuel and vehicle maintenance.

In May 2024, Glovo partnered with Nigerian EV manufacturer Siltech to use EV bikes for delivery in some parts of Lagos.

Yet, switching to EVs for Heyfood may be complicated since riders are currently paying off new petrol-powered bikes, which cost around $1,200–$1,700, according to a December report. 

With gig workers increasingly pushing for more pay as inflation bites and companies wary about passing on to customers, it leaves the sector between a rock and a hard place.

 

Most Generation Z want to ‘be their own boss’ — but one expert says they’ll face a reality check

 

Gen Z is increasingly proving to be the entrepreneurial generation, with the majority wanting to set up their own business — but one expert warns it might not be as straightforward as they think.

Some 75% of Gen Z — the generation born between 1996 and 2012 ­­— have ambitions to “be their own boss,” and have no intentions of working a 9-to-5 job for the rest of their career, a survey of 2,000 British adults by Santander UK found.

Additionally, 77% are confident about their ability to launch and run a successful business — and 39% say all they need is a smartphone to do so.

In contrast, just over a third of Gen X and Boomers said there were fewer opportunities to start their own businesses when they were young because of pressures to pursue traditional education and career paths. Gen X were born between 1965 and 1980, while baby boomers were born following World War II, between 1946 and 1964.

“Gen Z is proving to be the most entrepreneurial generation yet, and it’s no coincidence,” Sam Jones, Dragon’s Den star and founder of Gener8, said in the survey. “Unlike previous generations, they’ve grown up fully immersed in the digital age, where information, tools, and global connections are just a click away.”

This exposure has led to an innovation mindset, he added. “They’re not just prepared to start their own ventures – they’re uniquely positioned to outpace previous generations in turning ideas into reality.”

Gen Z’s entrepreneurial spirit is well-documented and is driven by a desire for autonomy and freedom — including more flexibility, a better work-life balance, and having a purpose — Dan Schawbel, a future of work expert and managing partner at Workplace Intelligence, said.

In one viral TikTok video, Alexis Firment, a former teacher from Ohio, complained about not being able to leave work early even if she had finished all of her tasks for the day. The video resonated with younger viewers and in the comments some lamented the struggles of “being treated like a child” at work.

“Having grown up in a digital age and witnessed economic instability, they’re often disenchanted with the rigid structure and perceived limitations of conventional work arrangements,” Schawbel said.

“Instead, entrepreneurship appeals to Gen Z as it offers more control over their work and life, opportunities for innovation, and the potential to leverage their technological skills. It also provides a platform to address social or environmental issues they care about, while potentially offering greater financial rewards and independence,” he added.

‘Potential Reality Check’

Gen Z’s key strength is that they’re digital natives and are quick to adopt new technologies, compared with older generations, according to Schawbel.

“Their innate understanding of digital platforms, social media, and emerging technologies allows them to navigate the online business landscape with ease,” he said.

But he pointed out that while Gen Z are tech savvy and smart, they may not be fully equipped to run their own businesses.

“Gen Z’s readiness for the challenges of entrepreneurship is a mixed picture. While they possess certain advantages like digital savviness and innovative thinking, many may underestimate the demands of running a business,” he said.

“The long hours, financial insecurity, and constant pressure of maintaining profitability can be daunting realities that clash with their desire for work-life balance.”

While some Gen Z entrepreneurs will thrive, other will face a “potential reality check,” as business demands clash with their lifestyle preferences, Schawbel added.