Ethiopia’s beU Hits Profitability Milestone

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.