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The 99 platform announces the end of the 99Food service, taking thousands of customers and partners by surprise.
The closure of a service acclaimed by thousands of Brazilians caught many people off guard. 99, one of the main urban mobility platforms in the country, recently announced the end of its delivery service, 99Food. And, as if that weren't enough, the announcement came unexpectedly, leaving customers and partners devastated. Yes, the end of an era!
On March 17, 2024, 99 sent an email to its partners informing them that the 99Food service would cease to operate as of April 17. The announcement, made shortly after the platform ended its delivery service with its own motorcyclists, raised a series of questions about the company's future in this competitive sector..
The Announcement 99
According to information from the Start-se portal, 99 executives have already indicated that the complete closure of 99Food was a productive step. In the official statement, the platform highlighted that it is reallocating resources to focus on services more aligned with its current strategy:
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"To continue democratizing our products and services, we constantly evaluate how we can better serve the needs and desires of our users. As a company, we decided to focus many of our resources on developing two-wheeled services, with the expansion of 99Moto into Ride-Hailing, and 99 Entrega Moto into delivery. For this reason, we have decided to discontinue the 99Food app.“, said the 99 statement.
The company also highlighted that delivery drivers can continue to generate income through the 99Moto and 99 Entrega Moto services, available in several locations in Brazil. However, the surprise announcement left many doubts among restaurants and consumers who depend on the platform for food delivery.
The end of 99Food and the delivery market
The closure of 99Food comes at a time when major technology companies are looking to streamline their operations and cut costs to boost profitability.. This movement reflects the challenge of competing with industry giants, such as iFood, which largely dominates the delivery market in Brazil.
In addition to 99, other major platforms have also reassessed their strategies in the segment. Uber Eats, for example, has closed its operations in the country, while Rappi has promoted its promotional campaigns to focus on the RappiPrime subscription service. The delivery market, which was once a gold mine, seems to be undergoing a transformation, and 99Food has ended up falling behind.
Launched in 2019, 99Food had a strategy of focusing on smaller cities, avoiding direct competition with iFood in large capitals. However, this strategy failed to gain sufficient traction, and the costs of expanding and competing in a dominated market required investments that 99 was not willing to make.
99 announcement leaves customers surprised with the end of the delivery service
99's exit from the delivery market is a reflection of changes in the technology and delivery sector in Brazil. Although 99Food was a valid attempt to challenge iFood's dominance, fierce competition and high operating costs made it unfeasible to continue the service.
Now, the platform intends to focus its efforts on urban mobility and two-wheel logistics, areas where it believes it can continue to grow and offer innovative solutions to its users. For many, the end of 99Food marks the end of an era in Brazilian delivery, but 99 remains firm in its journey of innovation.
With iFood's dominance and the challenges of lower taxes, will the solutions offered by 99 for motorcycle deliveries be able to meet the needs of partners and customers? Are we heading towards a monopoly in the delivery sector in Brazil? What do you think of this decision by 99?
