End of exclusive iFood service in Brazil

bye bye! iFood’s exclusivity in Brazil has ended, and its rival is turning a corner on delivery surprises

Ifood is one of the main delivery companies, and the closure of the platform’s exclusive service in Brazil has shocked thousands of customers.

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Good-bye

iFood, one of the country’s major food delivery platforms, will no longer be able to enter into exclusive contracts with large restaurant chains, according to UOL.

This change is expected in an agreement signed with Cade (Administrative Council for Economic Defense) on February 8, 2023. Until now, iFood has had exclusive agreements with giants such as Outback, McDonald’s and Habib. But now the story will change!

Also according to the portal, the new rule applies to restaurants with 30 or more units. iFood has a six-month period to implement these changes. Contracts currently in place with brands with 30 or more restaurants must be terminated by September 30.

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Cade made this decision because it realized that these large networks were strategically important for delivery applications, as they generated a high volume of orders.

The rules for restaurants with fewer than 30 units have also undergone changes. Now, exclusivity is allowed, but agreements can only last a maximum of two years. After this period, the restaurant will have to remain without exclusivity for at least one year.

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the changes

Furthermore, according to UOL, exclusivity agreements must now be limited to 25% of iFood’s total sales. In cities with a population of more than 500,000, exclusive restaurants can only make up 8% of the total establishments active on the platform. These new rules will be in effect for four years.

iFood has already spoken out, saying it is adapting its business model to these new rules. They claim these changes will have a “material impact” on their business.

This all happened after the process began in 2020 at Cade. Rappi, a competitor to iFood, commissioned this investigation and involved other companies in the sector. Raby’s argument was that iFood’s exclusive model made competition difficult.

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