{UAH} Hellofood storms e-market
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Hellofood storms e-market
Joe Falter, the founder of Hellofood Africa.
An increasing number of enterprises are going online thanks to faster internet connectivity and penetration across Africa. Joe Falter, the Hellofood Africa founder was recently in Kampala. He spoke to East African Business Week's Baz Waiswa on how they are managing to carve out a deepening market niche in the ready- food delivery business.
Question: Please tell us about the story and journey of HelloFood, how and when started?
We started in 2012 in the West African country of Nigeria from where we have grown to eleven other countries in Africa. Which are Morocco, Algeria, Ghana, Ivory Coast, Kenya, Rwanda, Tanzania, Senegal, Egypt and of course Uganda.
What inspired you to start a company that renders such a service?
The model we are using is a successful great online business model which is used a lot around the world. It clearly adds value to restaurants and the industry as a market place. The increased internet penetration in Africa has helped increase the potential for success of online businesses on the continent.
Compare your performance in West Africa to that of East Africa?
Uganda and East Africa is not far off from Nigeria in terms of size – Nigeria is a large market – but all markets are different. Some markets have high internet penetration, like in East Africa its high, some places in West Africa its low.
How was it like introducing this new business in the various markets? How were you received?
It has been great. We have had a fantastic reception especially in Uganda where people are responsive to new ideas.
The problem, (of ordering and accessing food in restaurants), we are solving, but is not new. It has been there forever. The way we are solving the problem is what is new. We are using internet to solve an old problem.
How do you manage to run such a successful business across different economies in Africa?
It comes down to people; they are everything. Yes we have the sophisticated technology, but people make things happen. We have a team of about 200 people working for HelloFood in Africa. Also we have a clear process of how to do things, and we are proud because we have the best people.
What kind of customers do you target?
HelloFood has something for everyone. For example, if a client wants sushi for 80,000 Uganda shillings or katogo for 5000 Uganda shillings, it can all be ordered for on the either the HelloFood app or website.
What type of food do you serve? Do buffets apply?
We have a full range of cuisines and prices that people can order from. One can buy traditional food for the same price you can get from the food vendor. You can also get pizzas and other foreign cuisines. Expatriates only make up a small percentage of our clientele. We have mostly local people ordering for local food –luwombo (boiled food prepared in banana leaves) is our top selling dish.
How much time does it take to have food delivered to a waiting customer?
Delivery times vary as a result of different distances from the serving restaurant to location of the customer. But the expected time for delivery is within 60 minutes as our aim is customer satisfaction and increased benefit of using the HelloFood service.
I personally ordered lunch today and it was here in 15 minutes, I was blown away. I don't want to promise people that that they will get their food delivered in 15 minutes but I can say that they will get their order within less than an hour.
What are you expansion plans?
We are looking for new markets to venture into in Africa. With 11 countries, I would like to take it to more countries on the continent and more cities in the already existing countries. We have only just started; there is so much we can do.
How does the online food business vary from one African country to another?
They are a few differences such as, ordering habits vary in the different countries; in some countries people are used to food delivery well while in others it is a new concept and of course a difference in the food that is delivered.
You have an app for android devices, how about other handsets?
Our mobile App is available on Android, Windows, iOS and a mobile website optimized for mobile phones.
Please compare Uganda to other markets in Africa?
We have been in Uganda for just over a year now, and the reception to the Hellofood service has steadily grown since the start and we have had a substantial growth spurt in the last quarter as a result of people understanding how to use the service and the obvious benefits of the service such as convenience.
And Hellofood is doing the same in other countries although HelloFood Uganda is one of the top performers on the continent.
Tell us about a general challenge in the various African markets?
One of the challenges in the various African countries were HelloFood operates, is that the physical address system is not well set up.
How have they been addressed?
The delivery teams we have hired in all the countries are very competent and well versed with the different areas hence mitigating the effects of poor physical address systems.
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