Didi’s R$1 Billion Bet on Brazil’s Food Delivery Market Signals Shift in Competitive Landscape

Chinese ride-hailing giant Didi unveiled plans to reinvest R$1 billion ($190 million) in Brazil through its subsidiary 99, relaunching its food delivery service 99Food by mid-2025.

The move targets Brazil’s R$140 billion food delivery sector, where iFood currently commands an 86% market share. Stephen Zhu, Didi’s global business head, confirmed the company’s strategy during a meeting with Brazil’s Vice President Geraldo Alckmin.

He emphasized a focus on affordability and the expansion of service options. Since acquiring 99 in 2018, Didi has built a network of 1.5 million drivers and 700,000 motorcycle couriers across 3,300 cities, supporting 55 million users.

Its financial arm, 99Pay, now facilitates seamless transactions for 50 million active accounts. Previous attempts to enter the food delivery market struggled due to iFood’s exclusivity deals with restaurants.

However, Didi’s renewed push draws on its success in Mexico—where it handles 300,000 daily orders and partners with 90,000 restaurants—as a blueprint for growth.

Brazil’s delivery workers, who processed 17 million monthly orders via iFood in 2024, have voiced demands for higher fees, creating an opening for competitors.

Didi’s reentry coincides with broader industrial investments, including a R$120 billion food sector pledge by local firms. Analysts note 99Food’s integrated logistics and payment ecosystem could pressure iFood to reduce its 30% commission rates, benefiting smaller restaurants.

The company also aims to expand electric vehicle partnerships, like its BYD collaboration, while navigating regulatory hurdles in São Paulo, where motorcycle taxis face court-ordered suspensions. With Latin America driving 90% of Didi’s overseas growth, Brazil’s market remains pivotal to its super-app ambitions.

More: Brazil news in English, every day from The Rio Times.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error