The purchase is still being analyzed by Brazil’s antitrust authority Cade. Box Delivery is said to have had sales of BRL 200 million ($39.4 million) in the last year.
Colombia based Rappi has announced an agreement to acquire 100 per cent of the Brazilian company Box Delivery, which offers last-mile delivery services to large restaurants and retailers in the country. The value of the deal was not disclosed.
Two months ago, Cade imposed new competition rules on the delivery segment market leader iFood, limiting the platform’s exclusivity with restaurants to 25 percent of its partners through the signing of a consent decree.
The co-founder and president of Rappi, Sebastián Mejía, reiterated that the negotiations with Box Delivery were not a result of the iFood consent decree, but he praised Cade and said he was optimistic about the future of the sector.
Box Delivery was founded in 2016. The company has 150,000 registered delivery drivers and makes about 1.7 million deliveries per month.
In February, following the agreement between CADE and iFood, Rappi CEO Tijana Jankovic called the authorities' decision extremely positive for the sector, which was harmed by monopolistic practices, and noted that the agreement encouraged her company to return to prioritize investments in Brazil.
Since 2020, other competitors such as Uber and 99, in addition to the Brazilian Association of Bars and Restaurants, had joined together through legal representations that requested the investigation of the exclusivity agreements that iFood had with customers.
Sources: Bloomberg Línea, Brazilian Report
