The company aims to challenge the dominant local player by offering lower commission rates to restaurants and subsidizing delivery fees for customers.

Operating under its international brand, Meituan plans to introduce its superapp model, which integrates food delivery with other services like hotel bookings and financial products. The company intends to recruit 50,000 delivery riders within a year, offering productivity bonuses to boost earnings during peak times.

Despite challenges such as a high share of cash payments and elevated customer acquisition costs, Meituan has set up a headquarters in São Paulo and partnered with digital banks to facilitate payments.

Competitors are responding with increased investments and incentives, while analysts expect Meituan to capture a significant share of the market within a few years, creating thousands of new jobs.

Meituan’s use of drone delivery technology, which has proven to reduce logistics costs substantially, may provide a competitive advantage. The company’s entry is likely to drive commission reductions across the industry, benefiting thousands of restaurant partners. Success will depend on adapting its business model to local preferences and navigating regulatory complexities in Brazil’s rapidly growing food delivery market.

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