Exclusive: Munchiz App faces closure five years into the online delivery business
The MUNCHIZ app has been down for two weeks now.
We might soon witness the closure of Nakuru based online delivery App Munchiz. The app has now been down for two weeks, not being able to serve its clients.
In an exclusive interview with Mtaa Wangu, Munchiz co-founder, Peter Mwarangu says that the business has had a rough patch influenced by the unfavourable business environment and the high cost of living experienced by clients who used the App.
“We might be making consideration to close down the app if the business environment continues to be unfavourable. Unlike in 2019 where the app had many clients making orders through the app, the situation changed in 2023. People are now inclined to priority budgeting. Spending less of luxury and focusing more on necessities.,” he reveals.
Peter Mwarangu, one of the founders of Munchiz delivery company.
Additionally, Peter notes that prizes of commodities ordered through the App have also skyrocketed consequently affecting the orders people make through the App.
“The price of a large pizza, three years ago was about Sh 800. Now the same pizza goes for Sh 1,200. It then becomes difficult for people who have been earning the same salary over the years without an increase to spend on online purchases. The high price of fuel has not made the situation any easier.”
He continues to say, “To get an order from the city centre to say Naka estate would cost around Sh 100. However, at this point, to get reasonable profits you cannot charge the client less than Sh 200 on delivery fee. For this reason, the app ends up struggling from less orders made and sustaining it becomes a problem,” he says.
Peter notes that for the app to continue running, the company needs an affluent market which has some extra level of money on its spending, something he says is not happening now.
A delivery bag used by Munchiz riders to carry food and other items to their clients.
He adds that the app had spread its wings in three counties, including Kiambu, Eldoret and Nakuru. Sadly, he says they might have to pull out from all of them.
The app developed in 2019, by Peter and Allan Mukuana, had been a darling to Nakuru residents who wanted to made online purchases from supermarkets, liquor stores to food joints.