O I feed announced last Friday (21), that he would terminate his services in Colombia. According to the company, this is a “capital market-based business strategy”.
According to reports, with the closure of the company in the country, a total of 210 people have been laid off. Additionally, iFood announced that the company’s app will be suspended from December 21 this year.
End of iFood in Colombia
First, the Brazilian company’s goal was to expand its business internationally, starting with Colombia, starting operations in the country in 2015. However, one of the reasons for the company’s departure is the strong competition with the Rap and Domicilios.com, a service launched in 2020.
Now, according to the delivery company, the main objective is to focus on operations in Brazil, where it will continue its strong investments.
“During the process of closing operations in Colombia, iFood will offer support and information to all customers, delivery people and restaurants, responding to possible requests and doubts in the best possible way,” the company informed.
End of iFood in Mexico
In addition to the company’s current escape to Colombia, it’s important to note that iFood also canceled its services in Mexico in 2020. The company started operations in 2016, however, SinDelantal, of which iFood owned 49 % of capital, ended its activities in the country, which meant that there was no other way out for the Brazilian company.
iFood is the market leader in delivery in Brazil, given that the company holds around 80% of the food delivery market share in the country. However, due to acquisitions and business moves that increased competitiveness by buying out competitors, the Brazilian company saw its parent company fined overseas.
At the end of September this year, the Administrative Council for Economic Defense imposed a fine of BRL 718,000 on the South African group Naspers – owner of Prosus, which controls iFood.