Xin Lang Cai Jing·2025-08-23 04:05Core Viewpoint - The competition between Chinese companies Didi's 99Food and Meituan's Keeta in Brazil has escalated into a fierce internal struggle, diverting focus from the dominant local player iFood, which holds over 80% market share [1][4][12]. Group 1: Competitive Actions - Meituan's Keeta has filed a lawsuit against Didi's 99Food, alleging that it has engaged over 100 restaurant chains with exclusive contracts worth over 10 billion RMB, aimed at undermining Keeta [1][10]. - Didi's strategy includes offering substantial cash incentives to restaurants to sign exclusive agreements that prohibit collaboration with Meituan while allowing partnerships with iFood [6][10]. - Didi has also attempted to confuse users by purchasing high-ranking search keywords related to "Keeta," leading to a court ruling against this practice [10][11]. Group 2: Market Dynamics - The Brazilian food delivery market is valued at approximately 86 billion RMB, with iFood as the clear leader, making the competition between Didi and Meituan particularly puzzling [12][13]. - Despite the low market share of both Didi and Meituan in Brazil, their internal competition has inadvertently benefited iFood, which is now positioned to capitalize on their conflict [17][18]. Group 3: iFood's Response - In response to the competition from Chinese firms, iFood announced a historic investment plan of 170 billion BRL (approximately 220 billion RMB) to enhance its market position and user engagement [20][21]. - iFood aims to increase its monthly order volume from 12 million to 20 million and expand its active user base from 55 million to 80 million over the next three years [20][21]. Group 4: Strategic Implications - The ongoing internal competition between Didi and Meituan reflects a broader issue of "involution" among Chinese companies abroad, reminiscent of past price wars in other markets [21][22]. - The need for Chinese companies to shift from zero-sum competition to collaborative strategies is emphasized, as cooperation could yield better outcomes against dominant local players like iFood [22].