Meituan to invest $1b to expand Keeta’s food delivery in Brazil

Chinese technology firm Meituan plans to invest US$1 billion over the next five years to establish and expand its food delivery service in Brazil.

The announcement was made during a forum attended by Meituan’s CEO Wang Xing and Brazilian President Luiz Inacio Lula da Silva, where the agreement was signed.

Meituan aims to launch its food delivery app, Keeta, in Brazil within the coming months.

This expansion marks the company’s entry into South America, following previous expansions into Hong Kong and the Middle East.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Brazil’s food delivery market poised for intensified competition

Meituan’s $1 billion investment enters a market currently dominated by a single player but with substantial growth potential ahead.

iFood currently controls approximately 86% of Brazil’s food delivery market, creating an environment ripe for disruption by well-funded competitors 1.

The Brazilian food delivery sector is projected to grow from $1.29 billion in 2024 to $4.53 billion by 2033, representing a 15% compound annual growth rate that makes it an attractive expansion target 2.

This move follows a pattern of increasing competition, with Rappi recently announcing a R$1.4 billion investment plan aimed at expanding from 30,000 to 100,000 restaurant partners by 2028 3.

DiDi’s 99Food is also planning a comeback with a R$1 billion investment to relaunch operations that previously included 114,000 registered restaurants across 59 Brazilian cities 4.

Recent regulatory changes restricting exclusivity contracts previously held by iFood have created a more favorable environment for new entrants, allowing restaurants to work with multiple delivery platforms simultaneously 4.

2️⃣ China’s investment strategy in Brazil evolves from resources to services

Meituan’s entry represents a significant shift in Chinese investment patterns in Brazil, moving beyond traditional resource-focused sectors.

Chinese investments in Brazil have evolved through distinct phases, initially focusing on natural resources but increasingly targeting technology, services, and consumer markets 5.