(Webwire) iFood is announcing the acquisition of Papa Rango and Alakarte , two competitors in Brazil’s fierce market for food deliver y services. With these acqu isitions, iFood brings eighteen new cities into its network and expects to add over 50 thousand orders per month, bringing its total orders per month to over 400,000. iFood is now the go-to delivery service for the majority of Brazil.
The two acquisitions come on the heels of a string of mergers and acquisitions for iFood that have made it the leading food delivery service in Brazil. Most recently, the company merged with RestauranteWeb , JustEat’s Brazilian business and the second biggest food delivery service in the region. Combined, the companies hold 70 percent market share. iFood also acquired competitor Central do Delivery in January of 2014.
“Because of Brazil’s size, delivery services have tended to grow region by region and were largely isolated from each other,” said Patrick Sigrist, chairman of iFood’s board. “ iFood is consolidating the best regional food delivery networks into a single and powerful platform. Papa Rango and Alakarte are great partners because the quality of their product has led to strong regional control, and because they both have a great founding team who believe in what we’re doing.”
Papa Rango launched in January of 2013 and has seen quick growth in its network of restaurants and customers in southern Brazil. Across the southern cities of Campo Grande, Uberlândia, Belém, Chapecó and Florianópolis, the company reaches 300 restaurants and over 50 thousand customers. Alakarte operates the South Eastern cities of Juiz de Fora, Ubá, Volta Redonda and Barra Mansa, and has a customer base of over 30,000 people.
“This acquisition adds a lot of value to Alakarte . By joining Brazil’s largest online delivery platform, we gain a solid platform for future growth, strengthening not only previous partner restaurants, but making it more enticing for restaurants to join us. And of course, hungry people get more variety in the food ordering options!” said Wilson Nogueira, co-founder of Alakarte. Davi Costa, Papa Rango’ s director of operations, reinforced Nogueira’s sentiments, commenting that: “We’re partnering with iFood because they’re a strong brand with more growth on the horizon, and we see a great opportunity to forge a path together.”
Brazil is considered one of the hottest markets for mobile in the world right now. As of 2013, Brazil was home to the largest mobile phone market in Latin America and saw 38% smartphone subscriber growth in 2013. iFood’s explosive growth over the past year is largely due to its focus on mobile.
“Brazilians, like much of the world, are embracing the flexibility and simplicity that apps provide, especially when ordering food.” explained Felipe Fioravante, CEO and founder of iFood . “And as Brazilians embrace smartphones, we stand poised for much more growth. In under a year we boosted mobile orders by 6X, and they now represent 65% of our business.”