Since competitors have raised the temperature in the delivery application market, IFOOD’s mantra is: “Do not expect any kind of crazy reaction.” At the opening of the company’s main annual event last Tuesday (5), this is what CEO Diego Barreto reinforced a plenary full of restaurant owners, precisely who is in the target of competitors.
Two Chinese control companies are the names that arrive to compete in a portion of the absolute leader in the application delivery market. One of them is already an acquaintance of the Brazilian market: the exemption of rates to restaurants. The newbie is Meituan, valued at over $ 600 billion on the Hong Kong Stock Exchange, which announced in May an investment of $ 5.6 billion to start its Brazilian operation with the same strategy of exempt rates in search for market share. The Colombian Rappi, in turn, was not long to exempt its commissions restaurants to get into the fight.
But changing restaurant collection policy is not a wave that iFood intends to enter. In fact, the company understands that little has to change in its strategy in the face of the new scenario. “When you have assets to compete, you are not reacting, you are continuing a process of evolution, action,” Barreto says in an interview with Infomoney.
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It is not like the company imagined passing without any scratch for the dispute. At first, there should be a reduction in market share due to increased competition, but all projections indicate for continuity of the growth pace.
IFOOD projects to jump the number of clients from 55 million by 2025 to 80 million by 2028. In the same period, the expectation is to leave 120 million monthly orders to 200 million monthly orders. The first impulse has already been announced: focused on increased traffic and recurrence of purchases in the application, as well as expansion of acting segments.
According to Barreto, the investment cycle is based on cash generation, leverage or investor’s capital increase, Prosus. The investment group, even, has reduced its position in Meituan, precisely the new competitor of IFOOD, even though the company denies that the arrival in Brazil is related to the divestment.
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“It has to do with a non -agreement with the strategy of creating multiple battle tracks around the world, especially at a very high competition in China,” says Barreto. In addition to Brazil, Meituan is expanding its operation to Saudi Arabia, Hong Kong and studies markets in Asia and Europe.
Free Market Fashion
An inspiration for the new moment is the free market, Argentine marketplace that has its main market in Brazil. “Amazon entered Brazil years ago, the free market lost revenue? Shopee and feared came in, the free market lost revenue? What it does is build assets that make it better,” says Barreto.
Assets, in the case of iFood, can mean more and more things. Only in the portfolio of companies acquired by Prosus – such as and Sympla – are hundreds of millions of accessed users. CRMbonus, the acquisition of iFood, adds 100 million Brazilians to the base.
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In addition, the company has aimed at. And within the app itself, the company is increasingly strengthening its financial services arm.
In July alone, the credit arm led R $ 160 million to restaurants, part of an amount of R $ 2 billion in financing available since the inauguration of the “iFood Pago”.
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Another relevant part of the iFood growth strategy has been based on acquisitions: there were 40 since 2011. According to Barreto, the $ 17 billion investment promised for 2025 does not include reserved values for new M&S.
In the last month, the Economic value . This movement would reinforce another bet of the company in the sector of food stamps, meal vouchers and corporate benefits. Barreto does not confirm the negotiations and says that a possible movement in this sector would have the sole reason to generate volume synergy.
Today, the large VR and VA companies, such as the allele itself, ticket, pluxee (formerly Sodexo) and VR benefits have 80% of the market. Between implemented and not implemented changes in the PAT, these companies have not even suffered a thud of new entrances such as IFood Benefits, Caju and Flash itself.
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“IFood Benefits grow at a large rate. We are beating 1 million customers next month. The market leader is around 6 million. The fourth place is around 2.5 million. I am already halfway to the fourth place, one of the incumbents,” says the executive.
