Building a Food Delivery Business in Underserved Markets

Trazo, formerly known as OliliFood, is expanding its operations from southern Nigerian cities like Asaba and Warri to the major markets of Lagos and Abuja. Founded in 2019 by Ikechukwu Nweze and his team, Trazo initially focused on providing food delivery services in underserved communities where larger competitors had neglected opportunities.

The company’s early success during the COVID-19 lockdown demonstrated the potential for digital commerce even in areas with limited infrastructure. While operating costs have risen sharply due to inflation—with motorcycles increasing from $219 to over $1,300 and fuel prices climbing significantly—Trazo has adapted through innovative solutions like a hybrid rider model that combines owned fleets with third-party logistics.

Diversified Revenue Streams Support Growth

What sets Trazo apart is its diversified approach to revenue generation. Beyond food delivery, the company’s founders have developed other successful ventures including Vent Africa (a crypto/fintech platform) and Hizo (a cross-border foreign exchange service). These additional income streams helped sustain Trazo during challenging periods when its core food delivery business wasn’t yet profitable.

Facing New Challenges in Major Markets

With over 120,000 orders processed and $1.5 million in gross merchandise value (GMV) generated across Asaba and Warri, Trazo is now preparing to enter more competitive markets. The company’s expansion plan for Lagos and Abuja by Q1 2027 will pit it against established players like Glovo, Chowdeck, and Heyfood.

While the scale gap is significant—Glovo alone delivered 38 million items in Nigeria last year with over $27 million invested locally—Trazo’s experience building a successful hyperlocal business positions it to compete on service quality and community focus. The company currently serves around 25,000 users across its network of five in-house riders and fifteen logistics partners.