During my coverage of the UN Climate Change Conference (COP30) in Brazil, I heavily relied on two ride-hailing apps—Uber and 99—due to unfamiliarity with the local language and environment. While Uber offered a globally consistent interface, 99 stood out with its real-time AI translation feature, bridging Portuguese-English communication gaps for international users.
A São Paulo-based user shared that Uber’s predictable pricing made it her default choice, though budget-conscious consumers often prefer 99 due to broader regional coverage. Beyond mobility, Brazil’s new battleground is food delivery, where DiDi Global Inc. (DIDIY) is making a bold move.
In April, DiDi announced its re-entry into Brazil’s food delivery sector, pledging R$2 billion (double its initial plan) in investments by June 2026. This follows its 2018 acquisition of 99, a local ride-hailing firm. But can DiDi challenge the dominance of iFood, which commands an 80% market share?
**Why iFood Remains Unshaken** iFood, launched in 2011, leveraged smartphone adoption and deep restaurant partnerships to build an unassailable supply network. Its exclusivity agreements, seamless app experience, and entrenched consumer loyalty have deterred rivals. Uber Eats exited in 2022 amid rising regulatory costs, while DiDi paused 99 Food in 2023, citing similar challenges.
**New Opportunities Amid Market Shifts** Brazil’s food delivery market, valued at R$139 billion in 2023, still has low penetration (30% of the population), with annual growth at 15–20%. iFood’s monopoly faces backlash: riders protest low wages, and restaurants criticize exclusivity clauses. Paulo Solmucci of Brazil’s Bar and Restaurant Association warns that such dominance stifles competition.
DiDi aims to disrupt this by offering fairer revenue splits for partners and lower prices for consumers. However, iFood is countering with a R$17 billion investment plan and integrating Uber for ride-hailing synergies—a defensive move ahead of DiDi’s expansion.
**DiDi’s Strategic Edge** DiDi’s experience in Mexico, where it outpaced Uber via tier-2 city expansion and multi-service bundling (ride-hailing, food delivery, and payments), provides a blueprint. In Brazil, 99’s 55 million users and 700,000 motorcycle riders (critical for last-mile delivery) offer a ready-made logistics network.
Yet, challenges persist. iFood’s brand loyalty runs deep, as noted by São Paulo resident Benaz: “I’d try DiDi out of curiosity, but staying depends on their local commitment.” Regulatory hurdles, like varying labor laws across Latin America, further complicate DiDi’s “shared mobility” model.
**The Road Ahead** As competition heats up, stakeholders—restaurants, riders, and regulators—are recalibrating their positions. Whether DiDi can rewrite Brazil’s food delivery playbook hinges on execution amid iFood’s entrenched dominance and evolving market dynamics. The outcome remains uncertain, but the battle lines are drawn.
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