The connected economy is a hyper-competitive battlefield — no matter where you look.
In some countries and regions where super apps are gaining ground, some strategic re-positioning by platform giants gives an indication of just how competitive things are getting.
To that end, March 7 looms as a red-letter day for platforms in the region. On that day, Uber is ending its Uber Eats restaurant delivery service in Brazil to focus on store delivery service Uber Direct and deliveries by online groceries platform Cornershop.
Read more: Uber Eats to Shutter in Brazil March 7
Call it a pivot within the market and not a wholesale exit.
It should be noted that the re-focusing comes as Uber’s most recent earnings results show that Latin America stood as one of the more slowly growing markets served by the company. Although the company notched double-digit percentage gains in the region, the 29% growth in the quarter that ended in September to $390 million paled with markets such as the U.S. and Canada, for example, which surged to 66% to $2.6 billion.
Separately, Germany’s food delivery firm Delivery Hero said Monday (Jan. 10) that it has sold $150 million of its stake in Latin American delivery firm Rappi. Delivery Hero still maintains about 8% of Rappi.
See more: Delivery Hero Sells $150M Share in Rappi
Rappi, for its part, is planning its initial public offering (IPO) for late in 2022.
Read more: Colombian Delivery App Rappi to Go Public Next Year
In July, Rappi launched a Visa credit card program for Brazilian users. Nearly a year ago, and amid continued price competition, Rappi and Uber Eats won the first round of a dispute against Brazilian rival iFood. Rappi had charged that iFood was eliminating competition by demand in exclusivity.
The lure of Latin America — and Brazil in particular — as an attractive market for digitization is underscored by PYMNTS research.
In the Global Digital Shopping Index: Brazil Edition, done in collaboration with Cybersource, PYMNTS found that 41% of Brazilian consumers surveyed are “very” or “extremely” likely to embrace digital-first features as they transact — a predisposition that is higher than has been found in other markets. Online journeys were up 42% during the pandemic.
See more: Online-Native Shopping Journeys up 42% Among Brazilian Consumers
But as the recent moves by Uber and Delivery Hero show, in the food delivery market at least, competition is still fierce. The bid to build super apps — especially for the platform that are coming to the market from outside Latin America — rests on making sure that all components of commerce, from retail to delivery, are connected in an unbroken stream of activity.
Hypothetically, if users are embracing Uber for ride-hailing, but then opting to use someone else for food delivery, then that continuum is interrupted. One thing is for sure: The jockeying for super app status will continue — and it will be intense.
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