Swoop, a food delivery platform operating in Lagos, is introducing performance-based rewards for independent food businesses, linking access to commission rebates, promotional funding and advertising support to sales milestones as it seeks to help small merchants overcome barriers to expansion.
The initiative, known as Swoop Legends, moves beyond the conventional food delivery model, where platforms primarily connect restaurants with customers and earn commissions on completed orders. It introduces a tiered structure through which participating merchants progress from Hidden Gem to Rising Star, Local Favourite and Swoop Legend, unlocking additional commercial benefits as they meet performance targets.
The programme, launched on October 30, begins with an eight-week pilot involving five food businesses, including Freaks and Fabulous Eats, an independent food brand founded by Adesunloye Ebenezer Adeola in Anthony Village, Lagos.
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Other participants comprise two existing Swoop merchants and two newly acquired businesses.
Under the initiative, selected businesses will receive dedicated account management, marketing materials, increased visibility on the platform, promotional support and weekly performance reports. Higher-performing merchants can also access commission rebates, co-funded promotions, dedicated advertising and priority placement within the app.
Eligible businesses may be considered for working-capital and growth financing, subject to individual assessment and approval.
The model reflects an emerging opportunity for digital platforms to deepen their relationship with small businesses by providing commercial support beyond customer acquisition, particularly as rising operating costs make expansion increasingly difficult for Nigerian entrepreneurs.
For small food businesses, attracting more customers does not necessarily translate into stronger profitability. Higher order volumes require additional spending on ingredients, electricity, labour, packaging and delivery, putting pressure on already thin margins.
Adeola’s experience illustrates the challenge. He started Freaks and Fabulous Eats with less than N20,000, selling shawarma and small chops through WhatsApp to customers in his neighbourhood.
The business initially fulfilled about five daily orders before growing to more than 30, expanding into corporate lunch deliveries, private events and catering. It now processes more than 100 orders weekly through Swoop.
However, expansion has brought operational pressures, including rising ingredient costs, electricity disruptions and traffic congestion, which threaten consistency and timely deliveries.
Swoop said the Legends programme would combine technology, marketing investment and hands-on commercial support to help merchants identify growth opportunities and reach more customers.
“Lagos is full of incredibly talented food entrepreneurs who have built remarkable businesses through hard work, creativity and determination. But even the best businesses need the right opportunities to grow,” said Steven Osiegbu, account management lead at Swoop.
“With Swoop Legends, we want to go beyond providing a platform for merchants to sell their food. We want to work closely with them, understand their ambitions and provide meaningful support to help them build businesses that can thrive,” he said.
The programme will also use weekly performance reports to help participating businesses understand sales patterns and identify opportunities to improve performance.
For Swoop, the eight-week pilot will provide an opportunity to assess how targeted promotions, improved visibility and closer merchant engagement affect sales and business growth before potentially extending the initiative.
The company said merchants could be selected through direct engagement with its account management team, referrals or a dedicated application process.
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The initiative comes amid growing pressure on independent food businesses to find sustainable ways of reaching customers while managing the rising costs of operating in Lagos.
However, the long-term impact of performance-based merchant programmes will depend on whether increased sales translate into better margins, stronger cash flows and the capacity to create jobs, rather than simply generating more transactions.
Through the pilot, Swoop is testing whether a food delivery platform can become more than a distribution channel by taking a more active role in the commercial development of the small businesses that depend on it.
Royal Ibeh is a senior journalist with years of experience reporting on Nigeria’s technology and health sectors. She currently covers the Technology and Health beats for BusinessDay newspaper, where she writes in-depth stories on digital innovation, telecom infrastructure, healthcare systems, and public health policies.
