In the rapidly evolving landscape of digital services, RIDE Food has emerged as a pioneer in Ethiopia's food delivery sector. A proud partner of Playfood, a food delivery software solution, RIDE Food exemplifies the successful integration of innovative technology and strategic partnerships. Operating as a Super App, RIDE seamlessly combines taxi and food delivery services within a single platform, thanks to the collaboration between Playfood and Onde, the market leader in taxi and ride-hailing software.
A Journey of Evolution and Innovation
Founded in 2014, RIDE initially focused on providing manual and SMS-based taxi booking services in Ethiopia. The company's commitment to adapting to market needs led to a significant upgrade in 2017, when it moved to the app-based Onde solution. This transition not only streamlined operations, but also improved the user experience and laid a solid foundation for future expansion.
In 2023, RIDE Food launched its food delivery service using Playfood's advanced solution. This strategic move has paid off, as the company has gained an additional business vertical and diversified revenue streams. The RIDE Super App now boasts a 5-star rating on the App Store and over one million downloads on the Play Store. These milestones underline the popularity of the app and the effectiveness of the integrated Super App model.
Embracing the Super App Model
RIDE's transformation into a Super App represents a significant milestone in its growth strategy. By offering both taxi and food delivery services within one application, RIDE provides unparalleled convenience to its users. This integration is made possible by Playfood and Onde's joint solution, which enables seamless operations across different service verticals.
Gedion Yitbarek, co-founder and COO of RIDE and RIDE Food, shared his insights in our recent podcast:
Strategic Growth through MVP and Dropshipping
RIDE's approach to expanding its food delivery vertical mirrors its gradual evolution in the taxi business. From the outset, RIDE adopted a minimum viable product (MVP) approach, starting with a dropshipping model. This approach allowed RIDE to test the market without the need for extensive contracts with restaurants. When a customer places an order, a courier is sent to the restaurant to pick up the food and deliver it to the customer.
While the dropshipping model offers flexibility and lower initial costs, it also presents challenges such as higher operating costs and potential delays. Gedion reflected on the strategy:
Transitioning to Contract-Based Partnerships
Recognising the limitations of the dropshipping model, RIDE Food is now moving towards regular contracts with restaurants. This strategic shift aims to reduce costs for customers, increase conversion rates and ensure a smoother order flow for both customers and vendors. By establishing formal partnerships, RIDE Food can offer more consistent service quality and reliability.
Enhancing Efficiency with Bike Couriers
A major operational challenge for RIDE was the congested city center, where most restaurants are located. Traditional car couriers often struggle with traffic and lack of parking, leading to delays and increased costs. To overcome this, RIDE is switching to bicycle couriers. The move is expected to reduce delivery costs and increase speed, providing a better experience for customers and more efficient operations for RIDE Food.
Gedion emphasized the importance of this change:
Impressive Growth Metrics
RIDE Food's partnership with Playfood has resulted in impressive growth. In Q1 2024 alone, RIDE Food received 44% more orders than in the whole of 2023. In Q3 2024, the order volume increased by 54% compared to Q2 2024. Overall, 2024 saw a sixfold increase in total orders compared to 2023.
While the number of partner restaurants has remained relatively stable over the past year, more fresh restaurants have been added in recent months, increasing the variety and quality of the offering. Similarly, the number of couriers has remained stable, with a recent notable increase in bicycle couriers, further optimizing delivery operations.
Lessons Learned and Future Directions
Reflecting on the journey, Gedion shared valuable lessons from RIDE's experience:
One of the critical mistakes RIDE identified was the initial imbalance of focusing more on driver acquisition than customer engagement. Moving forward, RIDE Food is taking a more balanced approach, ensuring that both sides of the platform receive the necessary attention to drive growth and sustainability.
Key Takeaways from RIDE Food’s Success
Strategic partnerships: Partnering with industry leaders such as Playfood and Onde can significantly improve service offerings and operational efficiencies.
Adaptive strategies: Transitioning from dropshipping to contract-based partnerships demonstrates the importance of evolving business models based on market feedback.
Operational efficiency: Shifting to bicycle couriers addresses logistical challenges and improves delivery speed and cost-effectiveness.
Balanced focus: Maintaining a balance between rider acquisition and customer retention is critical for sustainable growth.
Continuous learning: Treating challenges as opportunities for improvement fosters resilience and innovation.
RIDE Food's success story is a testament to the power of strategic partnerships, adaptable business models and a relentless focus on customer satisfaction. By leveraging Playfood's robust platform and Onde's market-leading software, RIDE has successfully navigated the complexities of the Ethiopian market and transformed itself into a super app that meets diverse customer needs. As RIDE Food continues to innovate and expand, its journey offers valuable insights for companies looking to thrive in the competitive food delivery landscape.
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