The verdict in three sentences
In Lagos, the last mile represents 15 to 30 % of an order's total cost and makes or breaks net margin. An in-house rider pays off above 8-10 deliveries/day in one zone; below that, Yango, Gozem or an aggregator are cheaper. The real margin leak is not the trip price but the failed-delivery rate (absent customer, vague address) which can reach 12 to 20 %.
What a Lagos delivery really costs in 2026
The posted trip price hides failed attempts, waiting time and returns. Here are 2026 orders of magnitude for an average intra-Lagos order (Ikeja, Lekki, Yaba, Surulere).
| Option | Cost per trip (FCFA eq.) | Avg lead time | Coverage | Failure rate | Share of basket | Break-even |
|---|---|---|---|---|---|---|
| In-house rider (bike) | 1,500 - 2,500 | 45-90 min | 1-2 areas | 8-12 % | 10-18 % | ~10 trips/day |
| Yango Delivery | 2,000 - 3,500 | 30-60 min | Greater Lagos | 6-10 % | 12-22 % | on demand |
| Gozem (bike/tricycle) | 1,800 - 3,000 | 40-70 min | Lagos + fringe | 8-12 % | 12-20 % | on demand |
| Glovo / aggregator | 2,500 - 4,500 | 30-50 min | Dense zones | 5-9 % | 15-30 % | basket > 15,000 |
| Inter-district courier | 1,000 - 2,000 | 2-24 h | Whole city | 12-20 % | 8-15 % | grouped volume |
On an average basket of 18,000 FCFA equivalent, a 3,000 trip already eats 16.6 % of revenue. If gross margin is 35 %, delivery consumes nearly half the margin before payment and return fees.
The real margin killer: the failure rate
A failed delivery costs twice: the wasted outbound trip plus the re-delivery. At 12 % failure on 300 orders/month, that is 36 re-billed trips, roughly 108,000 FCFA/month of pure loss at 3,000 per trip.
| Anti-failure lever | Effect on failure rate | Setup cost |
|---|---|---|
| WhatsApp confirmation before dispatch | -4 to -7 points | near zero |
| Customer-chosen time slot | -3 to -5 points | store integration |
| Mobile-money prepayment | -5 to -10 points | 1.5-2 % fees |
| Geolocated address (GPS pin) | -3 to -6 points | form field |
| Pickup point / store collection | -8 to -12 points | in-house logistics |
Mini case study
Ibrahim, who runs a cosmetics shop in Lekki, handles 250 orders/month, average basket 20,000 FCFA. He pays Yango 3,000/trip with 14 % failure. Delivery cost: 250 x 3,000 = 750,000 FCFA, plus 35 re-deliveries x 3,000 = 105,000 FCFA, total 855,000 FCFA/month (17.1 % of 5,000,000 revenue).
By enforcing mobile-money prepayment and a WhatsApp confirmation, his failure rate drops to 5 %. Re-deliveries fall to 12, i.e. 36,000. New total: 786,000 FCFA, a saving of 69,000 FCFA/month (828,000 FCFA/year) without switching carrier.
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
FAQ
In-house rider or external partner?
Below 8-10 deliveries/day concentrated in one zone, a partner like Yango or Gozem is cheaper because you pay no fixed salary (150,000-200,000 FCFA/month) or fuel. Above that, a dedicated rider brings unit cost below 1,500.
How do I shrink delivery's share of the basket?
Raise the average basket (cross-sell, free-delivery threshold at 25,000) and negotiate a volume rate. Going from 3,000 to 2,200 per trip over 250 trips saves 200,000 FCFA/month.
Does cash on delivery really worsen failures?
Yes: non-prepaid orders show 12-20 % failure versus 5-8 % with mobile-money prepayment. A financially committed customer cancels far less.
Which partner for the Lagos fringe?
Gozem and inter-district couriers cover the outskirts better, but with 2 to 24 h lead times. Reserve Glovo and Yango for dense zones where speed justifies the premium.
Can these couriers integrate with my online store?
Yes, via API or webhook: an order automatically creates a trip and tracking link. A well-built store syncs payment status, waybill and customer notification with no manual re-entry.
Let's talk about your project. We build stores that integrate delivery, mobile-money prepayment and customer tracking to protect your margin from the first kilometre. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
