Multinational giants eye opportunities in the sector.
The food delivery market is drawing increasing attention—and investment—from major multinational corporations. Recently, Dutch technology holding company Prosus, which owns iFood, expanded its presence in the sector by acquiring Just Eat Takeaway. Meanwhile, U.S.-based DoorDash has reportedly entered discussions to purchase Rappi’s global operations as it looks to strengthen its position in Latin America, according to information obtained by Valor.
Sources in the market indicate that DoorDash made preliminary inquiries last year, but the deal did not move forward due to differences over asset valuation. Founded in Colombia, Rappi operates in nine markets, including Mexico, Brazil, and Argentina. According to Statista, the platform is valued at more than $5 billion.
In September, Rappi’s leadership stated that preparations for an initial public offering (IPO) would be completed within 12 months, after which the company would wait for the right market conditions to list its shares. The discussions with DoorDash reportedly took place in the midst of these IPO plans. When contacted, Rappi stated that “rumors about the sale of the company’s global operations are not true.”
Founded in Silicon Valley in 2013, DoorDash has approximately 37 million users across more than 30 countries, with the majority in the U.S. In 2024, it recorded over 2.5 billion orders on its platform, generating $10.7 billion in revenue, a 24% increase from the previous year.
In 2023, Valor reported that DoorDash had hired a recruitment firm to scout technology and data analysis professionals in Brazil. At the time, the company expressed enthusiasm about local talent but did not confirm whether it planned to launch operations in the country.
In recent years, Rappi has been expanding its presence in Brazil—its third-largest market—particularly in the ultrafast delivery segment known as “Turbo.” The company’s estimated revenue in the country was R$2.4 billion in 2023, with an 80% growth projection for the following year, reaching R$4.3 billion.
Despite this growth, Rappi remains far behind the market leader. According to Euromonitor International, iFood holds more than 70% of the meal delivery market and 57.3% of the broader delivery sector, while Rappi accounts for just 7% and 6.2%, respectively.
Market analysts believe that mergers and acquisitions (M&A) could serve as a strategic lever for Rappi’s global expansion. The company’s most recent move in this direction was the acquisition of 100% of Brazil’s Box Delivery, a firm specializing in fast deliveries.
Prosus has also relied on M&As to fuel its growth. In addition to acquiring iFood in 2022, the company holds a 4% stake in China’s Meituan, 28% in Germany’s Delivery Hero, and 25% in India’s Swiggy. With the$4.29 billion acquisition of Just Eat Takeaway, Prosus has further strengthened its already extensive portfolio in the ready-meal delivery segment.
Since last year, the company has been led by Brazilian executive Fabricio Bloisi, who previously served as CEO of iFood for nearly 14 years. His appointment has raised expectations that Prosus will place greater focus on Brazil and Latin America as a whole.
Source: Valor International
