LatamList – iFood, the food delivery super app, and Domicilios.com from Delivery Hero, will join forces after Colombia’s Superintendency of Industry and Commerce approved the move. The decision has been almost an entire year in the pipeline.
With the partnership approved, iFood and Domicilios can now move forward with their business negotiations. iFood will have a majority hold in the company at 51%.
“There will be no immediate changes and both companies will continue to operate separately, offering the best experiences for our users, restaurants, and partners,” an iFood spokesperson said.
The Superintendency ruled that iFood’s integration of Domicillios would not affect the competition in the market. It stated that the nature of the services market means that it is not susceptible to price influences, offers low and accessible entry requirements, and has a high competitive potential.
Tiago Luz, Colombia country manager for iFood, commented that the company aims to become the leading food delivery app in the country. In 2020, iFood increased its delivery fleet by 700%, sales by 70%, and the number of restaurants on the platform by 200%.
The company also recently announced that will start paying insurance to its Colombian delivery employees.
“Colombia is a very high-potential market and our aim is to grow our presence in the country and become the favored food delivery service for all Colombians,” said Fabricio Bloisi, CEO of iFood.
Read more on Forbes.