Tech Roundup: South America’s top delivery apps go to war

You’re reading The Brazilian Report’s weekly tech roundup, a digest of the most important news on technology and innovation in Brazil. This week’s topics: Top delivery apps go to war, the new data protection agency seeks to increase its authority, IT&C a rare success story amid the pandemic.

iFood and Rappi to stage delivery apps war

Colombian antitrust regulators gave their approval for a merger between food delivery apps iFood and Domicilios.com. The ruling creates a new giant company, better positioned to compete with sector leader Rappi. 

Why it matters. What is now a battle for the Colombian market may spill over to the entire region, as the fight between the two apps in Brazil grows fiercer.

The deal. The merger was announced in April 2020 and gives iFood a 51-percent stake in Domicilios.com. The remaining shares will remain with German app Delivery Hero. 

• Last year, the companies reported that Domicilios.com had 12,000 partner restaurants in 30 Colombian cities. Approached by The Brazilian Report, iFood representatives said both apps will keep their operations separate for the time being. “Once negotiations are finalized, we will be able to carry out integration plans,” said the company, in an emailed statement.

Market share. Rappi holds a comfortable lead in the Colombian food delivery market, according to data collected by Statista. Meanwhile, in Brazil, iFood is king.

Monopoly concerns. In Brazil, Rappi and iFood are already at each other’s throats. Following complaints from Rappi and UberEats, Brazilian antitrust regulators barred iFood from signing exclusive agreements with restaurants earlier this month. The consequences...