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IFood Grocery Business in Brazil
Key Takeaways
- iFood has one of Brazil's largest grocery delivery platforms which was launched in 2019 with 2,100 grocers in 200 cities across the country.
- For the six months ended 30 September 2021, iFood had 17 million grocery orders from more than 22,000 stores across 730 cities.
- In 2020, iFood acquired SiteMercado, an online grocery platform, to boost the expansion of its grocery delivery business.
Introduction
This research report provides a company analysis of the iFood grocery business in Brazil. Details provided include a brief company overview of iFood's grocery business, investment amount, number of orders per month, the average size of purchases (AOV), revenue, and acquisition. The investment, revenue, and average size of purchases (AOV) for the company’s grocery delivery segment are not available in the public domain. As an alternative, we provided the corresponding data for the whole company.
Overview
- iFood Mercado, the grocery and ultra-convenience delivery service of iFood was launched in 2019 with 2,100 grocers in 200 cities across the country. It is one of Brazil's largest grocery delivery platforms.
Investment
- In August 2021, Prosus invested $120 million in iFood, through Movile. The investment extended beyond food delivery services into convenience and grocery delivery.
- For the six months ended 30 September 2021, iFood‘s trading losses rose to $100 million, driven by the grocery delivery investment.
- Dutch multinational company Prosus, the international Internet assets division of South African multinational company Naspers, is the main shareholder of Brazil‘s Movile, owner of iFood.
Number of Orders Per Month
- iFood is the top-ranked online groceries app in Brazil. For the six months ended 30 September 2021, iFood had 17 million grocery orders from more than 22,000 stores across 730 cities. This represents a 182% order growth compared with the same period in 2020.
Average Size of the Purchases (AOV)
- Between March 2020 and June 2021, iFood’s users spend less than $9 per order on average. The highest average order value (AOV) within the period was $9.3, recorded in June 2021. In 2019, iFood’s average order value was $10.
Revenue
- iFood's revenue was $208 million in 2019.
Acquisition
- In 2020, iFood acquired SiteMercado, an online grocery platform, to boost the expansion of its grocery delivery business, iFood Mercado. The value of the deal was not made public.
- The acquisition is expected to establish the grocery delivery business as an integral part of the iFood ecosystem.
- With the integration of SiteMercado into the iFood platform, iFood is becoming a more valuable partner for grocery retailers.
Research Strategy
For this research on the company analysis of the iFood grocery business in Brazil, we leveraged credible sources on the public domain including Prosus website, news releases, company documents such as Fact Sheet and Investor Presentation, Latin America Business Stories (LABS), Harvard Business School, Business Wire, Measurable AI, and Contxto. Prosus annual report does not contain information on iFood's grocery business. The investment, revenue, and average size of purchases (AOV) for the company’s grocery delivery segment are not available in the public domain. Hence, we provided the corresponding data for the whole company.