Sou Hu Cai Jing·2025-08-22 08:10Core Insights - The competition between Chinese companies Meituan and Didi in Brazil's food delivery market has intensified, with both companies employing aggressive tactics against each other before Meituan's service has even launched [2][5][10] - iFood, a dominant player in Brazil's food delivery market with over 80% market share, is backed by Prosus, which is also a major shareholder of Tencent [4][10] - Didi's strategy involves using "choose one" tactics against Meituan, similar to what iFood previously used against Didi, indicating a shift in focus from competing with iFood to undermining Meituan [5][13] Company Strategies - Didi has reportedly offered significant financial incentives to restaurants to prevent them from partnering with Meituan, while still allowing partnerships with iFood [7][10] - Meituan has responded by filing lawsuits against Didi for its aggressive tactics, including a claim that Didi has provided at least 900 million reais (approximately 1.18 billion RMB) in prepayments to secure exclusivity against Meituan [10][11] - Both companies have engaged in multiple legal disputes within a short timeframe, indicating a highly competitive and contentious market environment [15] Market Dynamics - The Brazilian food delivery market is projected to exceed $20 billion by 2025, making it an attractive target for international expansion [18] - iFood has initiated defensive measures, including a significant investment of 17 billion reais (approximately 22 billion RMB) to strengthen its market position against new entrants [16][18] - The aggressive competition between Didi and Meituan may lead to a scenario where both companies exhaust their resources without significantly impacting iFood's dominance [19][20] Industry Implications - The internal competition between Didi and Meituan raises concerns about the perception of Chinese companies in international markets, potentially harming their reputation [16][20] - There is a call for both companies to focus on collaboration rather than internal conflict, as the ultimate goal is to capture a larger market share rather than engage in detrimental competition [20] - The emphasis on traditional competitive tactics like "choose one" may hinder innovation and the development of differentiated services, which are crucial in the current AI-driven market landscape [20]