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Apps Merge as Race to Control Latin American Deliveries Heats Up

IFood, Delivery Hero tie-up will take on SoftBank’s Rappi
Covid-19 has posed new challenges for burgeoning industry

A worker carries an insulated backpack before making an iFood app delivery in Sao Paulo, Brazil, on April 1. — A worker carries an insulated backpack before making an iFood app delivery in Sao Paulo, Brazil, on April 1.
Photographer: Victor Moriyama/Bloomberg

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By Ezra Fieser

April 8, 2020 at 7:47 PM UTC

This article is for subscribers only.

Latin America’s delivery app wars are intensifying as Brazil’s iFood and a unit of Delivery Hero SE said they will merge operations in Colombia, setting up a battle with SoftBank-backed Rappi Inc. on its home turf.

Sao Paulo-based iFood and Domcilios.com, a subsidiary of Delivery Hero, said the merger will create one of the largest food delivery companies in Colombia, with a presence in 30 cities. IFood, which says it is the largest delivery app in Brazil and counts Prosus NV among its investors, will have a 51% stake in the new company. Financial terms were not disclosed.