Food delivery app Rappi is negotiating agreements with large fast-food chains as one of its main bets to take on market leader iFood, the company’s new CEO Felipe Criniti said in an interview with business newspaper Valor Econômico.
Mr. Criniti is the founder of Box Delivery, a platform focused on fast delivery solutions for large restaurants and retailers in Brazil, which Rappi acquired in April this year. He took over as CEO from Tijana Jankovic, who is now Rappi’s global vice president.
At the time of its acquisition by Rappi, Box Delivery served major food chains such as McDonald’s, Burger King, Pizza Hut, and Outback, as well as Zé Delivery, which delivers beverages from Ambev. Mr. Criniti did not name the restaurant chains with which he is negotiating the new contracts.
The idea is to sign these deals in September, when iFood’s exclusivity agreements expire due to a consent decree the company signed with Brazil’s antitrust watchdog Cade.
The restriction came too late for ride-hailing apps Uber and 99, which withdrew their food delivery projects (UberEats and 99 Food) from the Brazilian market last year because of iFood’s perceived monopoly — but it could be a turning point for the Colombian unicorn.
In February last year, just over a month after UberEats announced it was leaving the Brazilian market, Colombia-based Rappi filed a petition with Cade requesting the termination of all of iFood’s exclusivity agreements with restaurants and bars.
The company claimed that iFood’s market share would increase even further with Uber Eats’ departure from the country. According to Abrasel, an association of bars and restaurants that joined Rappi in the lawsuit, iFood had a 75-80 percent market share at the time.
In addition to accepting Rappi’s request to end all of iFood’s exclusivity agreements by September this year, Cade limited the platform’s exclusivity with restaurants to 25 percent of its partners.
Mr. Criniti also said the company is betting on geographic expansion, looking at cities beyond iFood’s radar to compete for leadership in the delivery market. Today, Rappi operates in 140 cities in Brazil and aims to reach 250 by 2025.
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