technology company 99 decided to close my food delivery app, 99 Food, from 17 April. The decision was announced after the company reduced its offer of services with courier partners in the previous month. However, the company continued to operate through delivery under the responsibility of the restaurants themselves.

“As a company, we have decided to focus a lot of our resources on the development of two wheel services by expanding the supply of 99Moto and 99Entrega Moto. For this reason, we have decided to discontinue support for the 99Food App as of April 17, 2023.“, the company said in a statement.

In February of this year, 135,000 99 Food establishments were registered, serving 59 cities in 22 Brazilian states. The company says couriers partners will be able to continue to operate through other platforms such as 99Moto and 99Entrega as long as these services are available at their locations.

“Our partners have already been informed about this decision. We hope that in the near future, restaurants will use our logistics solutions to continue distributing their dishes.“, – said the 99th.

In the announcement, the company said its partners have already been informed of the decision and expect restaurants to use its logistics solutions to continue serving dishes. 99 guaranteed that there would be no layoffs as a result of this measure.

iFood domain

The app-based food delivery market in Brazil is losing another competitor with the closure of 99 food service businesses, which will be out of business as of April 17. Since January 2022, other services such as Uber Eats, James Delivery and Alfred Delivery have also left the market, leaving the sector even more concentrated in the hands of iFood.

Uber Eats, which held the second largest market share in the country, ceased operations in Brazil in March 2022. In recent years, the app food delivery market has been highly competitive, with companies vying for space and looking to stand out through exclusive partnerships. with restaurants, promotions and quality of service.

However, the sector is undergoing a moment of transformation, with the emergence of new players and the regulation of anti-competitive practices. In February of this year, iFood reached an agreement with the Administrative Council for Economic Protection (Cade) in which it committed to cancel exclusive agreements with large restaurant chains and limit exclusive revenue generation in cities with more than 500,000 inhabitants.

A four-year term of termination (TCC) between iFood and Cade was signed following more than two years of investigation by the municipality at the request of competitors Rappi, 99 Food, Uber Eats and the Brazilian Association of Bars and Restaurants. (Abrasel), from September 2020

On the other hand, an American company door panel, the U.S. food delivery market leader, is recruiting Brazilian data and engineering professionals, according to a report published this week in the Valor Econômico newspaper. Doordash’s interest in the Brazilian market could signal a new wave of competition in the sector.

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Via: Folha de Sao Paulo

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