In the last decade, Kampala has been booming as an innovation and start-up business hub. Now, the COVID-19 crisis and its confinement measures are forcing businesses to adapt their models. A game changer is the online market for food delivery created by the Kampala Capital City Authority to de-congest food markets. But how are companies dealing with a drastically changed environment? Let’s have a closer look at one of those innovative companies in the food industry: Bringo Fresh.
Bringo Fresh is a food delivery company that helps farmers & families to reduce food waste and enhance their nutrition. They buy fresh fruits and vegetables, as well as meat, bakery goods and dairy products from 1500 family farmers who practice greenhouse farming, urban farming and mixed farming in and around Kampala. Consumers in Kampala, Wakiso and Entebbe can then they buy these fresh products on their website and get them delivered to their doorstep.
The COVID-19 challenge: Boom or bust
During the COVID-19 pandemic, city dwellers more than ever need food delivery services like the ones offered by Bringo Fresh. The government has directed people to stay at home and use food delivery services. The demand for deliveries has therefore gone up exponentially overnight. This opportunity for growth does not come without challenges for Bringo Fresh. The Government of Uganda has limited the freedom of movement to address the COVID-19 crisis. There is a 2pm curfew on motorcycle deliveries, which is the company’s primary mode of delivery. But that is not the only challenge: The reduction in the use of cash due to the fear of spreading the virus has led to a high dependence on electronic payments, which are often delayed. Lastly, the cost burden of stocking inventory for an ever-increasing amount of orders has increased rapidly.