On May 12, Chinese digital titan Meituan announced that it will introduce its food delivery service, Keeta, to Brazil in the coming months, with a planned investment of $1 billion over the next five years to support its development in the country.

On the same day, Chinese ride-hailing giant DiDi Chuxing, was reported to be planning an expansion of its services in Brazil, including an ambitious plan to build 10,000 electric vehicle charging stations.

Brazil is fast emerging as a critical destination for the global expansion of Chinese internet companies.

A Wave of Chinese Firms Head to Brazil

Explaining the rationale behind entering the Brazilian market, Meituan CEO Wang Xing noted that Brazil is a vast market with tremendous potential. According to the investment plan, once Keeta launches in Brazil, the company will build a nationwide instant delivery network. In addition, Keeta will provide local partners with integrated services, a wide range of marketing tools, and digital operation platforms to support the growth of local restaurants and merchants.

Meituan began expanding internationally in 2023. Currently, Keeta has been operating in Hong Kong for two years. Since its launch in Saudi Arabia in September 2024, the platform has rapidly expanded to all major cities in the country. Meituan reports that user numbers and order volumes have seen rapid growth, with a steady increase in merchant participation.

Wang Xing stated, “Internationalization is one of Meituan’s long-term strategic priorities. We are committed to expanding into overseas markets and creating new growth opportunities. Just as in the Asia-Pacific and the Middle East, we are excited to see how our operational experience and advanced technologies in food delivery can benefit users in Brazil.”

DiDi is another Chinese tech giant setting its sights on Brazil’s food delivery sector. On April 5, DiDi announced the relaunch of its food delivery operations in Brazil under the brand name “99 Food”, integrating the service with its broader local offerings in ride-hailing and digital payments.

DiDi first entered the Brazilian market in 2018 through the acquisition of the mobility platform 99, offering local users a combination of ride-hailing, financial, and delivery services. However, in April 2023, DiDi exited Brazil’s food delivery market to focus on developing its two-wheeler mobility services.

Now, DiDi has approximately 700,000 active drivers and 50 million active users in Brazil, primarily offering delivery and ride-hailing services across more than 3,300 cities and towns nationwide. Notably, orders for two-wheeler transport services have surpassed 1 billion in the past three years.

A DiDi spokesperson noted that the relaunch of the food delivery segment represents a natural extension of its urban services ecosystem in Brazil, rather than a restart from scratch. Many local merchants, they said, have expressed interest in Didi offering food delivery alongside its ride-hailing and parcel services. Following the relaunch, drivers on the platform will be able to transport passengers, parcels, and meals—all from a single interface.
International operations remain a key growth engine for Didi. In Q4 of 2024, DiDi’s international mobility services recorded 1.016 billion orders, representing a 29.8% year-on-year increase—outpacing the 10.8% growth of its China-based ride-hailing business. During the quarter, daily average orders globally exceeded 11 million.

Why are Chinese companies flocking to Brazil’s food delivery market? According to Huang Yuanpu, a researcher specializing in China’s new wave of global expansion, there are three key reasons behind the growing interest of Chinese firms in Brazil’s food delivery sector.

First, Brazil is the most populous country in Latin America, offering a vast consumer market. Second, Brazil serves as a strategic gateway to the broader Latin American region, providing companies a launchpad for regional expansion. Third, favorable geopolitical conditions—particularly strong China-Brazil relations—have created a supportive environment for Chinese investment. Huang also emphasized the “mental shift dividend,” where China’s rising global influence is boosting local receptiveness to Chinese platforms.

Data from Statista projects that Brazil’s online food delivery market will reach $18.8 billion in 2024, making it the largest in Latin America and placing it among the top ten globally.

Beyond food delivery, other Chinese business sectors are also expanding into Brazil. On May 12, Mixue Bingcheng announced plans to invest over ¥4 billion (approximately $550 million) in local procurement over the next three to five years, alongside opening its first store in Brazil in 2024. In November last year, Kuaishou launched its e-commerce platform Kwai Shop in Brazil, further diversifying China’s digital footprint in the region.

Challenging Brazil’s Homegrown Giant

Chinese tech firms’ entry into Brazil’s food delivery market has been largely welcomed by local stakeholders. Following DiDi’s April announcement to re-enter the sector, the Brazilian Association of Bars and Restaurants (Abrasel) issued a statement expressing optimism about 99Food’s return, calling it a significant development for the restaurant services industry. The association emphasized its long-standing commitment to fostering competition and reducing market concentration in the delivery space.

The statement also acknowledged Meituan’s interest in Brazil and expressed hope that the new competitive landscape would lead to a more balanced market with greater diversity in services and business models.

Brazil’s food delivery sector has seen major international players attempt market entry—only to exit shortly thereafter. Since 2022, several companies, including Uber Eats, James Delivery (a subsidiary of the GPA Group), and Alfred Delivery, have withdrawn. In March 2022, Uber Eats, once Brazil’s second-largest food delivery platform, ceased operations in the country. A year later, DiDi’s 99Food also shut down its service in April 2023.
At the time of 99Food’s exit, Abrasel’s CEO Paulo Solmucci commented:

“We regret the departure of yet another platform that could have played a crucial role in enhancing competition in the sector.”
Currently, the Brazilian food delivery market remains highly concentrated, with both Didi and Meituan facing a dominant incumbent: the homegrown platform iFood.

Founded in 2011, iFood is owned by Dutch tech investor Prosus and its Brazilian affiliate Movile. According to public data, iFood processed over 100 million orders in August 2024, a 30% year-on-year increase, and serves over 60 million customers. As of September 2024, it had partnerships with approximately 350,000 restaurants and employed around 310,000 active delivery drivers across Brazil.

In terms of market share, Sensor Tower reported in an August 2024 analysis that iFood commanded 89% of monthly active users (MAU) among food delivery apps in Brazil—far ahead of any competitor.

According to Sensor Tower, a major factor behind iFood’s market dominance is its aggressive advertising strategy, which has enabled it to reach a broader consumer base than competitors. Data from Sensor Tower indicates that iFood consistently leads in average advertising share across key mobile platforms in Brazil, including Instagram, Unity, YouTube, and AppLovin, outperforming other food delivery services like Rappi and PedidosYa.

Beyond marketing, iFood’s exclusive partnerships with restaurants have also contributed significantly to its success. In 2020, Abrasel and Rappi filed a legal complaint with Brazil’s Administrative Council for Economic Defense (Cade), accusing iFood of using exclusive contracts with restaurants to stifle competition. In February 2023, iFood reached an agreement with Cade, placing restrictions on its ability to form exclusive partnerships with restaurants—marking a key turning point in regulatory oversight.

As Chinese platforms enter Brazil’s delivery market, Huang Yuanpu noted that Chinese firms tend to be more agile and technologically sophisticated. While strategies from one market can’t be directly replicated, the core playbook—adapting to local dynamics while leveraging technological strengths—has been tested across multiple geographies.

DiDi emphasized that its success in Mexico, Colombia, and other Latin American markets will provide a foundation for its Brazil operations. DiDi’s ability to build integrated local ecosystems—linking ride-hailing, food delivery, and financial services—has proven effective. In Mexico, for example, DiDi is the only platform offering all three services, boasting around 16 million monthly active users, 500,000 active drivers, and partnerships with 90,000 local restaurants.

The intensified push by Chinese tech firms into Brazil reflects a strategic recalibration toward emerging markets with high growth potential. While local incumbents like iFood present significant competitive barriers, companies such as Meituan and DiDi are leveraging operational expertise, technological strengths, and localized strategies. Brazil is fast becoming a critical testing ground for the global scalability of China’s platform economy.

Editor: LQQ