DiDi Food’s Latin America Playbook: Brazil Relaunch and the Super App Battle

Okay, folks, grab a cup of coffee (or maybe some bubble tea, if you’re feeling adventurous like me over here in China!), because we’re diving deep into a story that’s unfolding thousands of miles away from both the US and my current perch here in Shanghai. It’s about one of China’s tech titans, DiDi Chuxing – you probably know them as the company that famously bought out Uber’s China operations back in 2016 – making some major moves in a region that might surprise you: Latin America.

As an American living and breathing the hustle of China, I get a front-row seat to how companies like DiDi operate domestically. They’re ubiquitous, woven into the fabric of daily life here. But seeing them take their playbook global, especially into markets so culturally different, is genuinely fascinating. And their latest chapter? A bold return to the food delivery scene in Brazil. This isn’t just about grabbing a slice of the pizza delivery market; it’s a complex strategic play with implications for global tech competition, and it tells us a lot about the ambitions of Chinese companies today.

My blog aims to bridge the gap, translating the nuances of Chinese society and business for folks back home. And trust me, understanding DiDi’s Latin American adventure requires unpacking some context – from their fierce domestic battles to the unique landscape of the markets they’re entering. So, let’s get into it.

DiDi’s Global Ambition: Why Latin America?

First off, why Latin America? For DiDi, which started its international push in earnest around 2018, the region represented fertile ground. While China’s market is hyper-competitive with established giants in every niche (think Alibaba’s Alipay and Tencent’s WeChat Pay dominating payments, and Meituan ruling the roost in broad local services), Latin America presented a different picture. It boasts large, young, increasingly digital populations, significant economic potential, and, crucially, a less consolidated market for the kind of “super app” ecosystem DiDi excels at building – integrating ride-hailing, food delivery, and financial services all under one roof.

Brazil, being the largest economy in the region with over 200 million people, was the natural entry point. In 2018, DiDi made a splash by acquiring 99 (often called “99 Taxis”), Brazil’s leading homegrown ride-hailing app. This wasn’t just buying a company; it was buying instant market access, local expertise, and a trusted brand. They wisely kept the “99” name, understanding the value of local identity – a lesson sometimes learned the hard way by expanding companies.

From that beachhead, DiDi, operating as 99, expanded aggressively. They didn’t just stick to cars; recognizing local needs, they launched 99Moto, a motorcycle ride-hailing service, which has been wildly successful, reportedly completing over a billion trips in its first few years across thousands of Brazilian towns. They also ventured into digital payments with 99Pay and dabbled in delivery services with 99 Entrega (package delivery) and, initially, 99 Food.

The First Bite: A Tough Nut to Crack

Now, about that first attempt at food delivery. DiDi launched 99 Food in Brazil around late 2019. The timing seemed right – the food delivery market was booming globally. However, they ran smack into a formidable local champion: iFood.

You might not have heard of iFood, but in Brazil, they are the dominant player, reportedly holding a staggering 80%+ market share. Think DoorDash, Grubhub, and Uber Eats combined, but maybe even more concentrated. Backed by Prosus (which, in an interesting twist, is also a major shareholder in Tencent, one of DiDi’s key investors and rivals back in China), iFood wasn’t keen on sharing the pie.

The competitive landscape got intense. Reports surfaced, mentioned in the reference materials, of iFood employing tactics that sound very familiar to anyone watching China’s tech battles: demanding exclusivity from restaurants. This practice, known in China as “二选一” (èr xuǎn yī), literally “choose one out of two,” pressures merchants to list only on their platform, effectively locking out competitors. Facing this immense pressure and iFood’s overwhelming market dominance, both 99 Food and Uber Eats (yes, Uber was fighting this battle too) made strategic retreats around 2022-2023, halting restaurant delivery services in Brazil. They kept the lights on for grocery and convenience store deliveries, but the main course – restaurant meals – was off the menu. For DiDi, it seemed like the Brazilian food dream was on hold.

Learning from Mexico: The Comeback Blueprint

But here’s where the story gets interesting. While Brazil proved challenging, DiDi wasn’t idle elsewhere in Latin America. They had launched DiDi Food in Mexico around the same time as their initial Brazil foray, and there, the story played out very differently.

Mexico, Latin America’s second-largest economy, became DiDi’s success story. They went head-to-head with Uber Eats and, according to multiple sources including Measurable AI data cited in the references, managed to overtake them. By early 2023, DiDi reportedly held over 50%, even close to 56% by some accounts, of the Mexican ride-hailing market, surpassing Uber. More impressively, DiDi Food became the largest food delivery platform in Mexico, boasting over 50% market share, serving around 16 million monthly active users, partnering with 90,000 restaurants, and powered by 700,000 active couriers (a combined figure for ride-hailing and delivery). They were doing something right.

What was the secret sauce in Mexico? The reference materials point to a few key strategies:

1. Synergy: They effectively leveraged their existing ride-hailing network. Drivers could potentially do both rides and deliveries, optimizing logistics and potentially lowering costs. This “出行+外卖” (chūxíng + wàimài – ride-hailing + food delivery) model proved potent. Reports suggest this synergy helped lower per-order costs by around 15% and significantly boosted user retention (up to 68%).
2. Value Proposition: They likely focused on competitive pricing and promotions, a classic DiDi tactic honed in the cutthroat Chinese market.
3. Targeted Expansion: Instead of just battling Uber Eats in the biggest cities, DiDi seems to have focused significantly on expanding into Mexico’s numerous smaller cities and towns (third and fourth-tier cities), tapping into underserved demand.
4. Ecosystem Integration: They rolled out DiDi Pay for seamless transactions and even introduced a loyalty program, DiDi Club, offering discounts across both rides and food, locking users into their ecosystem.

Mexico became DiDi’s Latin American validation point. They proved they could build a winning multi-service platform, integrating rides, food, and payments, and successfully challenge established players, even global giants like Uber. This success seems to have provided the confidence and the playbook for round two in Brazil.

Brazil Reloaded: The Second Attempt

Fast forward to April 2025, and DiDi officially announces the relaunch of 99 Food for restaurant deliveries in Brazil. This isn’t just flicking a switch back on; it’s a calculated reentry, armed with lessons learned and a potentially stronger foundation.

So, what’s different this time?

First, the existing infrastructure is much more robust. DiDi (as 99) claims around 50 million users in Brazil now. Their driver/rider network is massive: 1.5 million registered drivers total, with a crucial contingent of approximately 700,000 active motorcycle riders thanks largely to the success of 99Moto and 99 Entrega. This network, kept active through ride-hailing and package delivery during the food delivery hiatus, is a huge asset. They don’t need to rebuild a courier fleet from scratch. As one DiDi representative put it, “restarting Brazil food delivery is a natural extension… not starting from zero.” These riders can now seamlessly pick up food orders alongside passengers and packages.

Second, the payment piece is stronger. 99Pay has had more time to mature. Brazil has a complex payment landscape – cash is still common, installment payments are popular (reportedly used in 58% of orders!), and the instant payment system PIX has seen rapid adoption (used in ~56% of transactions). To bolster its capabilities, DiDi even acquired Brazilian fintech company BePay in 2023. A smooth, integrated payment experience via 99Pay is crucial for the ecosystem play.

Third, the strategy appears refined, borrowing directly from the Mexico playbook:

• Targeting the “Sinking Market”: This is a direct translation of the Chinese term “下沉市场” (xiàchén shìchǎng), which refers to penetrating lower-tier cities and rural areas. The sources strongly indicate DiDi is focusing its initial relaunch efforts outside of the major metropolitan areas dominated by iFood. They’re going after Brazil’s vast network of smaller and medium-sized cities (reportedly aiming for over 3,300 towns eventually, leveraging their existing 99 ride-hailing presence). Data suggests these secondary markets are significantly underserved – while Brazil’s overall food delivery market grew impressively (around 50.8% from 2019-2023, reaching ~US$27-28 billion annually according to Euromonitor), penetration in Tier 2/3 cities is reportedly below 5%, much lower than comparable markets. This is where DiDi smells opportunity.
• Competing on Ecosystem Value: Rather than just competing on food delivery alone, DiDi can offer restaurants and users a bundled proposition: rides, deliveries (food and packages), and payments. For merchants potentially chafing under iFood’s exclusivity demands, having an alternative platform that also brings them customers via ride-hailing and offers integrated financial tools could be appealing. DiDi hopes this “叫车+点餐+支付” (jiàochē + diǎncān + zhīfù – hail car + order meal + pay) closed loop can weaken the grip of single-service dominance.
• Leveraging Scale and Efficiency: With potentially 700,000+ riders already on the platform, DiDi can theoretically achieve logistical scale and efficiency quickly. Their experience in optimizing algorithms for dispatch and routing, honed over billions of rides and deliveries globally, is another key asset.

The New Battlefield: iFood, aiqfome, and the Road Ahead

Make no mistake, this is still an uphill battle. iFood remains the undisputed heavyweight champion in Brazil’s major cities, with immense brand recognition and deep pockets. DiDi’s strategy of focusing on smaller cities cleverly sidesteps a direct, immediate confrontation in iFood’s strongholds. However, even in these secondary markets, they face competition, notably from Magazine Luiza’s aiqfome, described as a leading platform in Brazil’s smaller towns with a presence in around 700 cities and significant order volume.

And let’s not forget Uber. While Uber Eats exited the restaurant delivery game in Brazil, Uber’s ride-hailing presence remains strong, particularly in the premium segment. It’s conceivable they could re-enter the food fray if market dynamics shift, making the competitive landscape even more complex.

Comparing the reported numbers gives a sense of the scale involved:

• DiDi (99): ~50M users, 1.5M registered drivers (700k active moto riders), covering 3300+ towns (ride-hailing footprint).
• iFood: Dominant market share (>80%), ~760k registered couriers, covering 1500+ towns.
• Uber: ~25M users, ~1.4M registered drivers/partners, covering 500+ cities (ride-hailing footprint).

DiDi appears to have a potential advantage in the sheer breadth of its rider network and town coverage, built primarily through ride-hailing. The challenge is converting that potential into a thriving food delivery operation, especially while navigating Brazil’s economic realities, including relatively high inflation which could impact consumer spending on discretionary items like food delivery. Balancing growth ambitions with user subsidies, rider incentives, and eventual profitability will be a tightrope walk – something DiDi has extensive, if sometimes painful, experience with from its domestic battles.

Why This Matters: Insights from the Expat Perch

Watching DiDi’s Latin American saga unfold from here in China offers a few key takeaways for folks back home:

1. Global Ambition is Real: Chinese tech giants are no longer content with just dominating their massive home market. They are serious players on the global stage, leveraging capital, technology, and operational know-how honed in arguably the world’s most competitive digital environment.
2. The “China Playbook” Travels (with Adaptation): Strategies like intense focus on operational efficiency, leveraging ecosystem synergies (super apps), aggressive market penetration (including “sinking markets”), and sophisticated use of data and algorithms are being deployed internationally. But successful execution requires deep localization – understanding local payment methods, transportation nuances (like the importance of motorcycles in Brazil), and consumer behavior, as seen with keeping the 99 brand.
3. Competition is Globalizing: The battle between DiDi and Uber, which started in China and then moved to Latin America and other regions, shows how tech competition transcends borders. We’re seeing complex webs of investment and rivalry, like Prosus backing both iFood (a DiDi competitor) and Tencent (a DiDi investor/rival).
4. International Markets are Growth Engines: As DiDi’s own financial reports show (international business seeing >30% YoY growth in orders and transaction value in 2024, hitting over 11 million daily orders internationally in Q4), these overseas ventures are becoming critically important drivers of future growth, especially as the domestic market matures.

The Final Word

DiDi’s return to the Brazilian food delivery market is more than just a business expansion; it’s a statement of intent. It signifies their commitment to the Latin American market and their belief in the power of their integrated “super app” model. Can they replicate their Mexican success against the formidable iFood and the complexities of the Brazilian market? It’s too early to call.

But as someone observing the relentless drive and adaptability of companies like DiDi here in China, I wouldn’t bet against them easily. They are playing the long game, leveraging their scale, technology, and hard-won experience. This Brazilian venture is a high-stakes, fascinating chapter in the ongoing story of Chinese tech going global. You can be sure I’ll be keeping an eye on how it unfolds, sharing insights from this side of the world. Stay tuned!