Addis Ababa’s streets are increasingly orange. The color belongs to beU delivery, a food delivery platform that has completed 3 million orders in Ethiopia by focusing on a single, simple metric: cheap. The company reported $13.4 million in revenue for 2024, a figure that arrived alongside a more significant milestone. It reached profitability in May of that year [AEO/SIG, December 2024].
For a food delivery startup in an emerging market, that is a rare data point. It suggests a model built for the local unit economics of Addis Ababa, not the subsidized growth playbooks of more mature markets.
The low-price wedge
beU’s strategy is a direct assault on affordability. The company claims its delivery fees are 67% cheaper than competitors, a figure repeated across its marketing and media coverage [LinkedIn, Unknown][Business Info Ethiopia, Unknown]. It charges restaurants a 10% commission, anchoring its business on high-volume, low-margin transactions [Trendtype Africa and Middle East, Unknown]. The target is the mass-market consumer for whom delivery has historically been a luxury.
The traction speaks to the wedge. The platform processes roughly 4,000 daily orders, with food representing 90% of its completed deliveries [AEO/SIG, December 2024]. Its orange-branded bikes and delivery boxes have become a visible fixture, a signal of both brand presence and the asset-light logistics model that enables its low-cost promise.
The founder’s second act
The founding team brings a blend of local and international experience, anchored by a CEO with a prior exit. Hao Zheng, beU’s CEO, was previously the founder of Ztelic, a Chinese social network-data startup acquired by Yahoo in 2013 [TechCrunch, July 2013]. He also served as CTO and co-founder at PlusAI Inc. [Bloomberg Markets, Unknown]. Co-founder Almas Beleshov acts as Chief Marketing Officer, while Matt Vasilev is the COO [CB Insights, Unknown][LinkedIn, Unknown].
The company’s backers reflect a mix of global and regional confidence. Its $3.3 million seed round in May 2022 included Y Combinator (which accepted beU into its W22 cohort), Goodwater Capital, and local angel investor Addis Alemayehou [Crunchbase, Unknown][shega.co, Unknown].
| Founder | Role | Notable Background |
|---|---|---|
| Hao Zheng | CEO & Founder | Founder of Ztelic (acquired by Yahoo); CTO/Co-Founder, PlusAI Inc. |
| Almas Beleshov | Founder & CMO | Studied at Beijing Jiaotong University. |
| Matt Vasilev | COO & Co-Founder | Operational lead. |
The path to profitability
Reaching profitability within five years of founding, especially in a capital-intensive logistics sector, is beU’s most compelling argument. The company has not disclosed its net margins, but the achievement implies a disciplined focus on unit economics from the start. Its model appears to avoid the deep discounting that plagues food delivery in other regions, instead competing purely on the service fee.
Its expansion beyond pure food delivery,such as a partnership with CheMed for pharmacy deliveries,suggests an intent to increase utilization of its rider network and build a broader on-demand utility [LinkedIn, Unknown]. The core bet remains unchanged: dominate the low-cost, high-frequency delivery slot for Ethiopia’s urban population.
Where the model faces pressure
No bet is without its counterfactuals. beU operates in a competitive field that includes Deliver Addis, ZMall, RIDE, and the global giant Uber Eats. Its low-price wedge is defensible only as long as it can maintain its cost advantage. Several risks could pressure that position.
- Fuel and operational inflation. A logistics business running on motorbikes is exposed to fuel price volatility, which can erode thin margins quickly.
- Competitive response. Rivals may choose to match its low-fee structure, triggering a price war that could undo its hard-won profitability.
- Market concentration. beU’s success is heavily concentrated in Addis Ababa. Scaling into other Ethiopian cities or across borders introduces new operational complexities and customer acquisition costs.
The company’s answer, for now, is scale. Three million deliveries and 4,000 daily orders provide a volume base that can absorb some cost fluctuations. Its early profitability also gives it a runway that loss-making competitors lack.
The next twelve months
beU’s seed round from 2022 has likely been deployed. The next logical step is a Series A round to fund geographic expansion within Ethiopia and potentially into neighboring markets. The profitability milestone makes it an attractive candidate for growth capital, though it may choose to grow more slowly using its own generated cash.
Key metrics to watch will be its daily order volume growth, the percentage of non-food deliveries, and any movement on its average order value. A move into adjacent verticals like groceries or retail could further use its logistics network.
The $3.3 million seed check from Y Combinator, Goodwater, and Alemayehou bought a proof of concept. The 3 million deliveries and the May 2024 profitability stamp bought credibility. The question for 2025 is whether beU can turn its low-cost wedge in Addis into a durable, scaled platform for East Africa’s mass market.
Sources
- [AEO/SIG, December 2024] beU Delivery metrics | https://aeo.sig.ai/brands/beu-delivery
- [TechCrunch, July 2013] Another Day, Another Yahoo Acquisition: Chinese Social Network-Data Startup Ztelic | https://techcrunch.com/2013/07/18/another-day-another-yahoo-acquisition-chinese-social-network-data-startup-ztelic/
- [LinkedIn, Unknown] beU delivery company page | https://www.linkedin.com/company/beu-delivery
- [Business Info Ethiopia, Unknown] beU delivery fee claim | https://www.businessinfo.et
- [Trendtype Africa and Middle East, Unknown] beU delivery commission model | https://trendtype.com
- [CB Insights, Unknown] beU Delivery people data | https://www.cbinsights.com/company/beu-delivery/people
- [Crunchbase, Unknown] beU delivery funding | https://www.crunchbase.com/organization/beu-delivery
- [shega.co, Unknown] beU Delivery part of Y Combinator’s 2022 cohort | https://www.shega.co
- [Bloomberg Markets, Unknown] Hao Zheng background at PlusAI Inc. | https://www.bloomberg.com
- [getlatka.com, 2024] beU delivery revenue | https://www.getlatka.com