Ethiopian food delivery startup beU has recorded May as its first profitable month after nearly four years of operation. The company, which launched in June 2021, has invested $4 million in infrastructure and operations to establish itself as a dominant player in Ethiopia’s competitive on-demand delivery sector.
With an average of 4,000 daily orders, beU has completed over 3 million deliveries, 90% of which were food-related. While the platform has expanded into book deliveries (7,000 orders) and B2B courier services (serving 17 businesses), food remains its core offering. The startup has also introduced a Cloud Kitchen initiative, enabling home cooks and small vendors to commercialize their recipes without physical storefronts.
Operating exclusively in Addis Ababa, beU serves more than 1,000 restaurants through a fleet of 750 delivery personnel, recognizable by their orange bicycles. CEO Hao Zheng declined to disclose exact profit figures but emphasized that the achievement was attained without drastic cost-cutting measures.
Expanding beyond the capital remains a challenge for Ethiopia’s last-mile delivery startups due to high operational costs, fluctuating transport regulations, and fuel expenses. However, beU’s bicycle-based model has helped mitigate some of these financial pressures.
Globally, food delivery platforms often take years to turn a profit. Uber Eats, for instance, only achieved full-year profitability in 2023 after a decade of operation. BeU, part of Y Combinator’s 2022 cohort, has raised between $2.5 million and $4 million from investors, including Goodwater Capital.
