Rappi acquired the Brazilian startup Box Delivery, which works with fast delivery logistics. Focused on the food service market, the startup receives around 2 million orders per month. The value of the acquisition was not disclosed.
The announcement comes shortly after The Administrative Council for Economic Defense (Cade) adopted measures to regulate the delivery market for bars and restaurants.
In February iFood and Cade reached an agreement on delivery exclusivity for restaurants. Exclusive contracts are those in which partner restaurants undertake not to make their delivery operation available on other platforms and, in return, receive investments from iFood and differentiated commercial conditions.
The petition has been questioning since 2020 the exclusivity contracts signed by the app that dominates 80% of food delivery, according to the Brazilian Association of Bars and Restaurants (Abrasel).
Rappi leads a lawsuit at Cade, moved by more than 40 companies and industry associations, according to the leader in the delivery of ready-to-eat meals in Brazil: iFood .
Even though the legal actions of Rappi didn’t help so far, they are not planning to give up the market.
“This is a new moment for the market and for us. This acquisition was another step towards what we want to be in the country. There is a lot of room for growth in Brazilian delivery and we are committed to this market, which is very important to us”, says Sebastian Mejia, founder of Rappi.
The purchase agreement was signed and submitted to the Administrative Council for Economic Defense ( Cade ). The body will now evaluate the acquisition until the complete conclusion of the deal.
Box Delivery was founded in 2016 and has already become one of the largest log. techs in Brazil. Currently, the startup carried out more than 2 million monthly deliveries in 250 cities through a fleet with more than 105,000 couriers in the base. In 2021, the startup received a Series A investment round of $30 million led by Aliansce Sonae.
The startup does not appear to the end customer. Box Delivery is focused on optimizing deliveries by commercial establishments and, according to the company itself, the operation is carried out directly with merchants and couriers, thus creating a ‘bridge’ to improve deliveries.
Box Delivery integrates management systems with its platform, identifying the means for delivery to be carried out within 30 minutes.