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The food delivery service in Brazil operated by a Chinese ride-hailing giant has announced plans to ramp up its investment in the local market. The company intends to inject BRL 2 billion (approximately USD 188.1 million) into its food delivery platform by June of next year. Additionally, it will introduce a BRL 6 billion support initiative aimed at providing delivery drivers with funds to purchase or lease electric motorcycles and bicycles.
On the same day, the company’s founder and CEO was reported to have met with the Brazilian President Luiz Inácio Lula, along with other senior executives from the platform.
The company launched its food delivery service on April 5, integrating the app with its ride-hailing and digital payment services within Brazil. Currently, the service operates in several cities, including Goiânia and São Paulo. According to a company spokesperson, by mid-2026, the platform plans to expand to over 100 cities across the country.
This platform is not alone in its efforts; another Chinese company specializing in on-demand services announced a USD 1 billion investment over five years to expand its food delivery app in Brazil. This investment aims to develop digital tools, expand marketing efforts, establish a logistics network with more than 100,000 riders, open a customer service center, and hire over 1,000 local employees.
Initially focusing on food delivery, the company has indicated that it may explore new areas such as fresh groceries and pharmaceutical e-commerce in the future. However, it does not plan to enter the ride-hailing sector. The company expects its services to be available in 15 metropolitan areas by June next year, with plans to cover around 1,000 major cities within five years.
The firm has already set up a local team in Brazil. Its founder expressed confidence in the Brazilian market during a recent earnings call.
However, tensions have arisen between these two companies. In August, a court in São Paulo issued an injunction ordering the delivery platform to cease manipulating search results for a competitor’s app name on Google and similar platforms, with penalties for non-compliance. Furthermore, the rival company accused the platform of offering cash incentives to merchants to favor their app and exclude competitors, claiming this stifles competition and innovation. The Brazilian Association of Bars and Restaurants publicly supported the competing platform’s position against exclusive contracts and practices that restrict market access.
Legal actions have escalated, with the rival company filing a lawsuit alleging trademark infringement and unfair competition, citing the similarity in app appearance that could confuse consumers. They also requested a redesign of the competitor’s logo. The accused company responded that their branding had been established years prior and has become associated with its parent company, which has been in operation for over 14 years.
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