Unicorn rumble for Colombian turf

Unicorn rumble for Colombian turf
Unicorn rumble for Colombian turf

Contxto The Colombian unicorn, Rappi, just got a little premonition that shook its legs. And with good reason.

That’s right, turns out the Brazilian Unicorn, iFood and Domicilios.com, Berlin-based and acquired by Delivery Hero, have partnered up. They didn’t only join forces, but they will also do so in Colombia. 

This has definitely not been the best year for Rappi. Stating the year with layoffs and stopping the massive expansion. Sure, COVID-19 has brought, until today, an improvement in demand. However, this consumer behavior is not meant to last forever.

Now, the latest bad news for Rappi is this partnership which will be the combination of operations from two delivery titans, who have been circling this patch for a while now. Indeed, this is not the first time we hear about an attempt to hit the Colombian unicorn on its own turf.

Clash of titans

The combined operations of iFood and Domicilios.com will now represent the largest geographic presence in Colombia with 12,000 in over 30 cities across Colombia.

Fabricio Bloisi, CEO of iFood, showed confidence by saying:

In recent years, we have worked to grow iFood in Brazil and across Latin America. The time has come to increase our presence in Colombia, which is a very strategic country for our future growth.

Bloisi continued: “Domicilios.com operations are complementary to ours and with the partnership, we will serve twice as many cities as other players in the market. In addition to geographic leadership, we will be bringing our world-class expertise in technology, including artificial intelligence (AI), to enhance the experience on Domicilios.com.”

With this, iFood will hold the majority of stakes in the combined entity. They will focus on increasing their capacity. Carlos Moises, iFood’s vice president for Latin America, will be in charge of the integration plan.

Moises said: “The Colombian market has great growth potential and the new partnership will accelerate our investments in Colombia.”

Therefore, if you combine the forces of a well structured Brazilian unicorn and a global leader in the delivery industry and put them in the homeland of the only Colombian unicorn, the premonition that shook Rappi is not only justified but no doubt a prelude to the massive clash that we’re about to witness.

With this, iFood will become the closest second to lead the Colombian market in the last-mile delivery industry. 

Wanna hear more? We recommend you listen to the following podcast episode: Las oportunidades se multiplican a medida que se aprovechan. You can find the time stamp available in the description.

Related articles: Tech and startups from Colombia!

-CM

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