The market for food delivery in Nairobi is much larger. Few players have entered the market, including supermarket chains such as Naivas and Carrefour. They have had varying degrees of success. The high cost of delivery, which can be over KES 100 ($0.77), makes it less attractive to residents who prefer to buy affordable groceries at roadside stalls (popularly known as “vibandas”), but residents in upscale neighborhoods, where these stalls are rare or unavailable, are the main target customers for online shopping.
Shop Kenya is looking to capitalize on this market with Bolt Market. The product is integrated in its Bolt Food application. Bolt stated in a December 2024 statement that the move was part of its strategy to expand services, grow market share, establish itself as a trustworthy platform for convenient on-demand grocery deliveries.
Before COVID-19 in-person dining and shopping in stores were commonplace in Kenya. Online food and grocery purchases were limited to early adopters who lived in urban areas. The pandemic prompted a shift in retail that forced retailers adopt delivery models, partner platforms, and innovate, with options such as same-day deliveries, driven by consumer demands for convenience and security.
By 2027, 16.7% of Kenyans will be shopping for groceries and food online. This is due to the growing demand for efficient delivery and convenience. Bolt Market is Bolt’s push to diversify its services beyond ride-hailing, and challenge established players on a market that places a high value on speed and convenience. This competitive market has forced players like Jumia Food to close their food delivery business in Kenya, and other African markets due to stiff competition and unprofitability. Bolt Market is confident that it can make things better, but has taken a cautious approach. Grocery delivery can be a difficult business, with many challenges such as high delivery fees that discourage price-sensitive consumers and competition from supermarket chains (Naivas, Carrefour), Glovo and Uber Eats. Bolt Market is available in Nairobi’s Kilimani area, and targets customers within a 10km radius, including Upper Hill and South C. Bolt Food customers can order groceries between 8:00 AM and 11:00 PM, or schedule deliveries up to 24 hours in advance.
“The demand for fast and convenient deliveries makes it an ideal place for a central hub,” Edgar Kitur’s General Manager, Bolt Food, told TechCabal. Bolt Food is testing a free delivery service within a 3-kilometer radius, as well as discounts up to 80%. This will help them to compete with more wealthy rivals and aggressive pricing. Bolt Market’s circumspect debut reflects the harsh realities in Kenya of the logistics industry, where similar businesses failed. The market is a niche, as many consumers prefer affordable “vibandas” and rely on upscale areas. Convenience and reliable service are more important than cost concerns.
Kitur said, “Our average order is between KES 300 ($2.32) to KES 38,000 (293.78). This varies by user due to local pricing differences,” Kitur explained, signifying a preference for high-end clients.
Bolt’s cautious Kilimani launch is intended to gather data about service efficiency, customer satisfaction and market viability, before it can move forward. Kitur said that the Kilimani store would provide enough data to evaluate service effectiveness, customer satisfaction and market viability.
Nairobi’s high delivery fees discourage many potential customers. This is especially true outside of the city’s most affluent neighbourhoods where KES 100 ($0.77) could buy a kilogram of tomatoes. Joseph Makau, who uses a delivery app frequently, told TechCabal customers who are interested in grocery deliveries prefer to bundle groceries with other items at supermarkets.
The same user said, “I’d rather order groceries from the supermarket on top of my monthly shopping than ordering groceries alone.”
“Carrefour doesn’t charge for deliveries for large orders. Kariuki, a customer who uses rivals such as Naivas and Carrefour interchangeably told TechCabal that they only charge KES 129 (US$1) for small orders.
Five customers who have used grocery deliveries once or twice, told TechCabal they enjoyed ordering from home, comparing the prices, and receiving personalised offers. Some customers find delivery fees high, particularly if they live far from the stores. Restaurants and retailers have introduced buy-and-collect, timed purchases and same-day deliveries to increase convenience and choice. Bolt Market
claims to have access to more than 2,000 products including fresh produce, household essentials and beverages. It did not specify its partners, but it sources locally to ensure consistency in supply, uses AI logistics to optimise delivery, and enforces strict quality checks. Bolt Market also explores new pricing strategies such as discounts based upon order size and distance. Future subscription plans are also hinted at to offer predictable pricing and cost-savings for regular customers. Subscription models are beneficial to logistics firms because they provide a steady revenue stream and improve demand forecasting.
While delivery costs are a major concern to customers, Kitur’s platform addresses a broader array of operational issues vital to the overall customer experience.
The platform will be expanded beyond Kilimani, to estates such as Parklands, Eastleigh and Lavington, with an eventual rollout outside Nairobi on the horizon. There is no fixed timeline. Bolt Market will, for now, use Kilimani data to refine its service. It will also determine customer response in a competitive market.
Kitur hinted that as the service expanded, subscription plans may be explored for regular users. Subscription models help customers save money by offering discounts and a predictable price. Logistics firms benefit from stable revenue and better forecasting of demand.
