Didi restarts its food delivery business in Brazil, and a new narrative emerges in its internationalization.

After releasing its 2024 report card, Didi has taken a new step forward.

On the morning of April 5, 2025, Didi announced the relaunch of its food delivery business in Brazil under the brand "99 Food". The aim is to integrate local transportation and payment services in Brazil to provide local users with a "one-stop" experience and more choices. The brand "99 Food" is derived from "99", a Brazilian ride-hailing platform acquired by Didi in 2018.

This is a microcosm of Didi's increasing focus on international development in recent years. The latest financial report shows that in the fourth quarter of 2024, Didi's international business orders reached 1.016 billion, a year-on-year increase of 29.8%. The Gross Transaction Value (GTV) of its international business has maintained a growth rate of over 30% for four consecutive quarters. International business has become an important growth engine for Didi.

Going global and entering the food delivery market are not new for Didi. What's different this time is that it is now better prepared.

Familiar Territory

Didi is not a newcomer in the Brazilian market.

In January 2018, Didi entered the Brazilian market by acquiring the transportation platform 99, offering local users transportation services including express cars, taxis, and ride-hailing motorcycles, as well as financial and delivery services. This was also a move in Didi's official launch of its internationalization strategy.

Even in the early days of going global, Didi began exploring the overseas food delivery business. Mexico was the first country where Didi established a foothold in the food delivery field. Soon, the business expanded to Costa Rica, Peru, Colombia and other places, and Didi captured incremental markets at a relatively low cost.

The first setback occurred in Brazil.

In December 2019, Didi attempted to launch a food delivery business in Brazil under the brand "99 Food". However, the local player iFood dominated the market, accounting for up to 80% of the Brazilian food delivery market at its peak. This meant that most chain restaurant brands were deeply tied to it, and the "either-or" dilemma soon troubled merchants and the new platform.

"If you can't win, withdraw." In early 2022, long-time rival Uber decided to cut its losses and shut down its food delivery service Uber Eats in Brazil. Soon after, Didi also chose to suspend its food delivery business in Brazil.

Now that Didi is back, the situation has changed. Although external competition still exists, the market diversity in Latin America, especially in Brazil, is increasing.

In terms of overall scale, Latin America is a market that almost meets the requirements of "timing and location". According to Research and Markets, the global online food delivery market is expected to reach $317.7 billion by 2032, with a growth rate of 10% from 2023 to 2032. Data from HORIZON shows that the compound annual growth rate of the Latin American online food delivery market is expected to be 17.6% from 2023 to 2030, far higher than the global average. "All the giants are eyeing Latin America during its urbanization process as an attractive battlefield," a former food delivery platform entrepreneur told 36Kr.

Brazil is a key market in the region. With a population of over 200 million, ranking seventh in the world, Brazil is the largest economy in Latin America. According to Euromonitor International, the total size of the Brazilian food delivery market reached 139 billion reais in 2023, with an annual growth rate of about 15% - 20% in the past four years. Statista also pointed out in its report that the size of the Brazilian food delivery market has led Latin America for two consecutive years, several times larger than that of Mexico, the second-largest market.

Competition still exists - iFood remains the "giant". This company, headquartered in São Paulo, still occupies about 80% of the existing food delivery market in Brazil. On the one hand, this means that Didi needs to explore new ways to break into the market. On the other hand, "the presence of profitable leading players proves that this is a good market," said the above-mentioned entrepreneur.

The reason is that the Brazilian market is large but also more complex and has a low penetration rate. There is ample room for imagination even in the incremental market. According to Euromonitor International, the current food delivery users in Brazil only account for about 30% of its population, while in China, this figure has exceeded 50%. At the same time, its overall ecosystem is more complex and in an earlier stage, with high delivery costs and an inconvenient payment system. These represent familiar experiences and opportunities for Chinese players. iFood is more common in first - and second-tier cities, but the needs of users in lower-tier cities have not been fully met, indicating significant room for service improvement.

Better Prepared

Beyond the external environment, looking at Didi's changes in recent years, its own capabilities have also been steadily improving. Currently, Didi has about 700,000 active riders in Brazil, mainly providing delivery and transportation services, covering more than 3,300 towns of various sizes in Brazil. Among them, the number of orders for two-wheeled transportation services exceeded 1 billion in less than three years after its launch.

Photo: A Brazilian rider is carrying a passenger

Currently, Didi's digital wallet "99Pay" launched in Brazil supports functions such as bill payment and mobile phone top-up, and also offers payment services for merchants and consumers, providing conditions for a closed-loop payment system for future food delivery orders. The mature transportation and delivery business also means a solid foundation for food delivery capacity.

Photo: 99Pay payment page

"Relaunching the food delivery business in Brazil is a natural extension of Didi's local urban service ecosystem, not starting from scratch," a Didi spokesperson said. "After the relaunch of the food delivery business, riders on the platform can carry passengers, deliver goods, and deliver food." This is also the expectation of many local merchants for Didi - to provide not only transportation and delivery services but also food delivery services.

This ecological "extension" has been verified in Mexico. Didi officially entered Mexico in April 2018, offering local users a variety of products and services including ride-hailing/ride-hailing motorcycles, goods delivery, food delivery, daily necessities delivery, credit cards, and small loans. Currently, it provides services in more than 70 cities in the country, serving about 16 million monthly active users locally, with 500,000 active riders, and has partnered with 90,000 local restaurants.

Didi's experience and achievements in Mexico also show that it is no longer a novice in the food delivery market. According to 36Kr, Didi's business team in Brazil is highly localized. "And being firmly established in Mexico allows the international business team to devote more energy to expanding high-quality markets like Brazil," said a person close to Didi.

Overall, a clearer market understanding and the capabilities accumulated over seven years of development in the Latin American market give an optimistic outlook to Didi's "second attempt" in the Brazilian food delivery market.

Taking Another Step in Internationalization

Relaunching the food delivery business in Brazil is a side note in Didi's continuous progress in its internationalization narrative.

Since taking its first step in 2018, Didi's internationalization has entered its eighth year. Currently, its international business covers 14 countries in Latin America, Asia - Pacific, and Africa, providing diverse services mainly focused on transportation, including food delivery and finance. Among them, transportation services cover 14 countries, and food delivery services were previously provided in four countries: Mexico, Colombia, Costa Rica, and Peru.

In 2024, the total number of orders in Didi's international business reached 3.613 billion, a year-on-year increase of 35.8%; the GTV was 91.3 billion yuan, a year-on-year increase of 34.8%, and the total transaction volume has maintained a growth rate of over 30% for four consecutive quarters.

Looking back on its journey, Didi has always advanced along a clear strategic path in its international business - focusing on existing markets, continuously deepening its presence, and creating a "one-stop" lifestyle service platform for local users. Simply put, it is based on a large, mature, and highly penetrative business to "bloom in multiple areas" and integrate into the daily needs of local users as much as possible. "Relaunching the food delivery business in Brazil is a specific manifestation of Didi's internationalization strategy," a Didi spokesperson said.

Currently, the average daily order volume of Didi's international business exceeds 11 million (including completed transportation and food delivery orders), with an annual active user scale of about 80 million, over 5.5 million annual active drivers, and over 500,000 annual active food delivery riders. Behind these numbers is the accumulation of time and patience.

Market analysts believe that by increasing its investment in Brazil, Didi may be able to leverage the international experience accumulated over the past seven years to further boost its business volume in the entire Latin American region, thereby driving the company's overall performance to achieve new breakthroughs.