99’s Closing of 99Food Operation Comes as iFood Consolidates Leadership and Tech Companies Seek Increased Profitability
A 99 has decided to stop operations of the 99Food app. The announcement of the end of the deal was given yesterday evening (17th) in an e-mail sent to the partners. The app will stop working from April 17th.
The announcement comes just over two months after the 99 have finished the delivery service with their bikers in the app, leaving only the marketplace model. At that time, executives interviewed by the startups already mentioned that this was a step towards the complete closure of operations.
“To continue to democratize our products and services, we are constantly evaluating how we can best meet the needs and wants of our users. As a company, we have decided to focus a lot of our resources on developing services for two-wheelers, with the expansion of 99Moto in ride-hailing and 99 Delivery Moto in delivery, for this reason we have decided to suspend the 99Food application”, wrote the 99who also thanked partners along the way of the service.
Contacted through his press office, the 99 he said he hopes that, in the near future, restaurants will take advantage of the company’s logistics solutions to continue distributing their meals. “Delivery drivers can keep their 99 earnings with 99Moto and 99 Moto Delivery where these services are available,” she continued.
According to 99, the dedication to Brazilian users and the communities in which it operates remains unchanged. “We have robust mobility and fintech solutions that, combined, enable more people to thrive through our platform on a daily basis.”
The closing of 99Food it happens at a time when tech companies are looking to streamline their operations and reduce costs in pursuit of better outcomes. The exit from the segment of 99 also comes on the occasion of the consolidation of the dominance of iFood in the sector. OR Super close the operation of Uber Eats. OR Sugar Loaf incorporated James Delivery. And Rappi is pulling the plug on rebate campaigns and wants to bring more consumers to its subscription service, RappiPrime.
OR 99Food was born in 2019 with an expansion strategy focused on smaller cities, avoiding direct competition with iFood, market leader thanks to its strength in large capitals. Full edge eating, however, didn’t work. With the domain of iFood, grown requires large investments to grow. And in the case of 99even before the pandemic, the movement had to be more contained and seek profitability.
Source: Terra
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