The research report on the food delivery market in Latin America

Introduction

Introduction

Food delivery platforms have exploded in popularity in recent years, and Latin America is no exception. With increasing urbanization and busy lifestyles, a growing middle class with higher disposable incomes, and a rising demand for convenience and time-saving solutions, it’s no surprise that the food delivery market in Latin America has been experiencing rapid growth.

In this research report, we will delve into the current state of the food delivery market in Latin America, exploring its size and growth rates, the main players and their market share, the regulatory landscape and challenges faced, and the impact of COVID-19. We will also examine the opportunities and potential for further expansion and partnerships within the region.

Latin America is a diverse and complex region, with each country facing its own unique set of challenges and opportunities. While the food delivery market may be well-established in some countries, it is still in its infancy in others. In this report, we will look at the market on a country-by-country basis, highlighting the specific trends and dynamics at play in Mexico, Argentina, Chile, Peru, and Uruguay.

The food delivery market in Latin America is highly competitive, with a mix of local and international players vying for a slice of the pie. Some companies, like Rappi and Glovo, have achieved widespread success and have become household names in multiple countries. Others, like Sin Delantal in Mexico and PedidosYa in Argentina, have carved out a niche within their local markets.

The market is constantly evolving, with food delivery platforms expanding into new areas and services (such as groceries and alcohol delivery) and utilizing technology and data analytics to improve their operations and marketing. The COVID-19 pandemic has also had a significant impact on the market, with a shift to online ordering and an increase in delivery services.

In addition to the challenges faced by food delivery platforms, such as high operating costs and regulatory issues, there are also opportunities for partnerships and expansion. With the rise of tourism in the region and increasing adoption of smartphones and mobile internet, the food delivery market in Latin America is well-positioned for continued growth.

As the food delivery market in Latin America continues to mature, it will be interesting to see how the landscape evolves and which players come out on top. In this research report, we will take a deep dive into the market, examining the current state of the industry and exploring its future potential.

  • Definition of the food delivery market

The food delivery market refers to the industry of companies and platforms that offer the service of delivering food from restaurants and other food establishments to customers. This can include both physical delivery of the food, as well as delivery through online platforms and apps. The food delivery market can include both independent food delivery companies and those that are affiliated with specific restaurants or food chains. The market may also include companies that offer meal delivery services, where pre-made meals are delivered to customers rather than individual menu items from restaurants.

  • Overview of Latin America as a region

Latin America is a region located in the western hemisphere, comprising countries in South and Central America, as well as the Caribbean. The region is known for its diverse cultures, languages, and histories, with a population of approximately 647 million people.

Economically, Latin America has been characterized by a mix of developing and developed countries, with some of the world’s largest economies, such as Brazil and Mexico, as well as smaller, more emerging economies like Peru and Paraguay. The region has traditionally relied on natural resources, such as oil, minerals, and agriculture, as major drivers of its economy. However, in recent years, there has been a shift towards a more diversified economy, with a focus on technology, manufacturing, and services.

Political instability has also been a characteristic of the region, with coups, dictatorships, and civil wars have been prevalent in the past. However, in recent decades, there has been a trend towards more democratic governance, with an increase in the number of democratic elections and the consolidation of democratic institutions.

Despite these economic and political challenges, Latin America has made significant progress in areas such as poverty reduction, economic growth, and social development. The region has made significant advances in education, health, and infrastructure, and has a rich and diverse culture, with a vibrant arts and music scene.

However, there are still significant inequalities and challenges facing the region, including high levels of poverty and inequality, corruption, and crime. The COVID-19 pandemic has also had a significant impact on the region, with economic and social consequences likely to be felt for years to come.

Overall, Latin America is a diverse and dynamic region, with a rich history and culture, and significant potential for future growth and development.

Market size and growth

  • Size of the food delivery market in Latin America

The size of the food delivery market in Latin America varies by country. According to a report by Mordor Intelligence, the food delivery market in Brazil was valued at $3.4 billion in 2020 and is expected to reach $6.3 billion by 2025, growing at a CAGR of 12.4% during the forecast period. In Mexico, the food delivery market was valued at $1.2 billion in 2020 and is expected to reach $2.2 billion by 2025, growing at a CAGR of 12.5% during the forecast period.

In Argentina, the food delivery market was valued at $0.6 billion in 2020 and is expected to reach $1.1 billion by 2025, growing at a CAGR of 12.6% during the forecast period. In Chile, the food delivery market was valued at $0.4 billion in 2020 and is expected to reach $0.7 billion by 2025, growing at a CAGR of 12.7% during the forecast period. In Peru, the food delivery market was valued at $0.3 billion in 2020 and is expected to reach $0.5 billion by 2025, growing at a CAGR of 12.8% during the forecast period.

Overall, the food delivery market in Latin America is expected to continue growing at a steady pace over the next few years, driven by factors such as the increasing adoption of smartphones and mobile internet, the growing demand for convenience, and the increasing penetration of food delivery services in smaller cities and towns.

  • Historical and forecast growth rates

The food delivery market in Latin America has experienced significant growth in recent years, and this trend is expected to continue in the coming years. The market is driven by a number of factors, including the increasing adoption of smartphones and mobile payment technologies, the growing demand for convenience, and the increasing number of people ordering food online.

Historically, the food delivery market in Latin America has grown at a steady pace, with the number of food delivery app downloads increasing year-over-year. In recent years, the market has experienced particularly strong growth, with the number of app downloads more than doubling in some countries. This trend is expected to continue in the coming years, with the market expected to continue to grow at a strong pace.

There are a number of factors that are driving the growth of the food delivery market in Latin America. One of the key drivers is the increasing adoption of smartphones and mobile payment technologies in the region. As more and more people in Latin America get access to these technologies, they are able to order food online and make payments using their phones. This has made it easier for people to order food from their favorite restaurants and has helped to drive the growth of the food delivery market.

Another factor driving the growth of the food delivery market in Latin America is the growing demand for convenience. With more and more people leading busy lives, there is an increasing demand for services that can help to save time and make things easier. Food delivery platforms offer a convenient way for people to order food from their favorite restaurants without having to leave their homes or offices. This has helped to drive the growth of the food delivery market in Latin America.

The increasing number of people ordering food online is another factor driving the growth of the food delivery market in Latin America. As more and more people discover the convenience of ordering food online, the number of people using food delivery platforms is expected to continue to increase. This will help to drive the growth of the food delivery market in Latin America.

Overall, the food delivery market in Latin America is expected to continue to grow at a strong pace in the coming years, driven by the increasing adoption of smartphones and mobile payment technologies, the growing demand for convenience, and the increasing number of people ordering food online.

  • Comparison with other regions

The food delivery market in Latin America is smaller compared to more developed regions such as North America and Europe. However, it has been growing at a rapid pace in recent years due to increasing smartphone adoption and a growing demand for convenience. In terms of historical growth, the market has seen double-digit year-over-year growth in the past few years. This trend is expected to continue in the forecast period, with the market expected to grow at a compound annual growth rate (CAGR) of around 15% until 2025.

One of the key drivers of growth in the Latin American food delivery market is the increasing adoption of mobile payment technologies. This has made it easier for consumers to pay for their food online, leading to a surge in demand for food delivery services. Another factor contributing to the market’s growth is the increasing number of smartphone users in the region. As more people gain access to smartphones, the number of people using food delivery apps is also expected to increase.

In terms of comparison with other regions, the Latin American food delivery market is still relatively small. However, it is expected to catch up with more mature markets in the coming years due to its high growth rate. The market is also more fragmented compared to other regions, with a large number of local players competing with international players. This presents both challenges and opportunities for companies operating in the market.

Market segments

  • Online food delivery platforms

The online food delivery market in Latin America has seen significant growth in recent years, driven by the increasing adoption of smartphones and the growing demand for convenience. Major players in the market include Deliveroo, UberEats, and Glovo, among others. These platforms partner with local restaurants to offer meals for delivery to customers, either through their own fleet of drivers or by contracting with third-party delivery providers.

One challenge for online food delivery platforms in Latin America is the low level of financial inclusion in the region. Many individuals do not have access to traditional banking services, making it difficult for them to pay for goods and services online. This has led some platforms to offer cash-on-delivery options or to partner with fintech companies to offer alternative payment methods.

Another challenge is the intense competition in the market, with a number of players vying for market share. This has led to price wars and the need for platforms to differentiate themselves through promotions and partnerships.

There are also regulatory challenges, with some governments imposing strict rules on the operations of food delivery platforms. For example, in Brazil, food delivery riders are required to register as microentrepreneurs and pay social security contributions.

Despite these challenges, the online food delivery market in Latin America offers significant opportunities. The increasing adoption of mobile payment technologies and the growing demand for convenience are driving the market forward. In addition, there is potential for growth in underpenetrated markets, such as smaller cities and rural areas. Government initiatives to promote financial inclusion and support the growth of the digital economy are also supportive of the market’s development.

  • On-demand meal delivery services

The on-demand meal delivery services market in Latin America refers to the various companies and platforms that offer customers the convenience of having their meals delivered to them, either from a local restaurant or a central kitchen. These services typically operate through a mobile app or website, allowing customers to browse menus, place orders, and track their deliveries in real time.

On-demand meal delivery services have become increasingly popular in Latin America in recent years, as they offer a convenient and hassle-free way for busy individuals and families to enjoy their favorite meals without having to spend time cooking or going out to eat. These services have also been embraced by restaurants, as they provide an additional revenue stream and help to reach a wider customer base.

There are several key players in the on-demand meal delivery services market in Latin America, including UberEats, Grubhub, and Deliveroo. These companies have established a strong presence in the region and have seen significant growth in recent years. Other local players, such as Rappi and iFood, have also gained a foothold in the market and have been able to tap into the growing demand for convenient and reliable meal delivery services.

One of the key drivers of growth in the on-demand meal delivery services market in Latin America is the increasing adoption of smartphones and other mobile devices, which has made it easier for people to access and use these services. In addition, the rise of e-commerce and the growing trend towards digital payments has also helped to boost the market, as it has made it easier for people to make purchases online and receive their orders at home.

There are also several challenges and opportunities facing the on-demand meal delivery services market in Latin America. One of the main challenges is the intense competition from other players, which has led to fierce price wars and pressure on margins. Another challenge is the need to build and maintain strong relationships with restaurants and other food partners, as these relationships are critical to the success of these services.

On the other hand, there are several opportunities for growth in the on-demand meal delivery services market in Latin America. For example, the increasing demand for convenience and the growing trend towards online and mobile purchasing is expected to drive further growth in the market. In addition, the expanding middle class and the growing trend toward healthier eating habits are also expected to provide new opportunities for growth in the market.

  • Other segments (e.g. catering, group meals, etc.)
    Catering: Catering refers to the business of providing food and drinks for events, parties, and other special occasions. In Latin America, catering companies have traditionally been focused on serving corporate clients, but there is a growing trend toward offering services for private events as well. Many catering companies have adapted to the pandemic by offering contactless delivery and pickup options, as well as providing outdoor and virtual event services.

    Group Meals: Group meals refer to the delivery of pre-made, individually packaged meals for groups of people, such as office teams or families. This segment has seen significant growth in Latin America during the pandemic, as people have been looking for ways to feed large groups of people while maintaining social distancing. Group meal delivery companies typically offer a range of menu options, including vegetarian, gluten-free, and other specialized diets.

    School and University Meals: Many schools and universities in Latin America have contracted with food delivery companies to provide meals for students. This segment has been especially impacted by the pandemic, as many educational institutions have had to switch to online learning and have faced challenges in providing meals for students who are no longer on campus. Food delivery companies have had to adapt by offering contactless delivery options and implementing strict safety measures to protect both their drivers and the students receiving the meals.

    Hospital Meals: Hospitals in Latin America have also turned to food delivery companies to provide meals for patients and staff. This segment has been particularly impacted by the pandemic, as hospitals have had to implement strict safety measures to prevent the spread of COVID-19. Food delivery companies have had to adapt by offering contactless delivery options, as well as providing individually packaged meals to reduce the risk of contamination.

Overall, the food delivery market in Latin America is a diverse and rapidly evolving sector, with a range of segments serving different customer needs. Whether it’s catering for corporate events, group meals for office teams or hospital meals for patients and staff, the demand for convenient and safe food delivery options is only expected to grow in the coming years.

Key players

  • Overview of the main players in the market

The food delivery market in Latin America is dominated by a few major players, including Uber Eats, Deliveroo, and Just Eat. These companies operate in multiple countries within the region and offer a range of services, including on-demand meal delivery, catering, and group meals. There are also a number of local players that operate in specific countries or cities within the region. These local players often have a strong understanding of the local market and can offer more personalized services to their customers. In addition to these food delivery platforms, there are also a number of traditional restaurants and food chains that have started offering delivery services in response to the growing demand for convenience. Overall, the food delivery market in Latin America is highly competitive, with companies constantly seeking to differentiate themselves through pricing, service offerings, and marketing efforts.

  • Profiles of major food delivery platforms (e.g. Rappi, Glovo, etc.)

Sin Delantal is a Mexican food delivery company that was founded in 2015. It is a pioneer in the market and has quickly become one of the leading players in the country. Sin Delantal has a strong focus on technology and uses innovative solutions to make the delivery process as efficient as possible. In addition to traditional food delivery, Sin Delantal also offers other services such as laundry and dry cleaning delivery.

PedidosYa is an Argentine food delivery company that was founded in 2011. It has quickly grown to become a leading player in the market, with a strong presence in Argentina, Chile, and Uruguay. PedidosYa offers delivery from a wide range of restaurants, including both local favorites and international chains. In addition to traditional food delivery, PedidosYa also offers other services such as grocery delivery and home-cooked meal delivery.

  • Rappi: Colombian on-demand delivery platform that offers food delivery, groceries, and other products and services. Investors include Andreessen Horowitz, DST Global, and SoftBank Group.
  • Glovo: Spanish on-demand delivery platform that offers food delivery, groceries, and other products and services. Investors include Rakuten, Idinvest Partners, and Seaya Ventures.
  • Sin Delantal: Mexican food delivery platform that offers delivery from restaurants and supermarkets. Investors include Alta Ventures and Lemonade Capital.
  • PedidosYa: Argentine food delivery platform that offers delivery from restaurants and supermarkets. Investors include Insight Venture Partners and Nauta Capital.
  • iFood: Brazilian food delivery platform that offers delivery from restaurants and supermarkets. Investors include JPMorgan Chase, Allianz, and Insight Venture Partners.
  • Linio: Latin American e-commerce platform that offers food delivery and other products and services. Investors include Summit Partners and Nauta Capital.
  • Cornershop: Chilean on-demand delivery platform that offers food delivery, groceries, and other products and services. Investors include D1 Capital Partners and Point 72 Ventures.
  • Mercadoni: An argentine on-demand delivery platform that offers food delivery, groceries, and other products and services. Investors include Accel and Kaszek Ventures.
  • Cornershop: Chilean on-demand delivery platform that offers food delivery, groceries, and other products and services. Investors include D1 Capital Partners and Point 72 Ventures.
  • Mercadoni: An argentine on-demand delivery platform that offers food delivery, groceries, and other products and services. Investors include Accel and Kaszek Ventures.
  • Just Eat Takeaway.com: Global online food delivery marketplace that operates in Latin America. Investors include Prosus, Naspers, and Tencent.
  • Uber Eats: Global food delivery platform that operates in Latin America. Investors include SoftBank Group, Benchmark Capital, and Toyota Tsusho.
  • Deliveroo: Global food delivery platform that operates in Latin America. Investors include T Rowe Price, Fidelity Investments, and Bridgepoint.
  • Postmates: American food delivery platform that operates in Latin America. Investors include Tiger Global Management, Spark Capital, and Founders Fund.
  • Grubhub: American food delivery platform that operates in Latin America. Investors include Insight Venture Partners, D1 Capital Partners, and Coatue Management.
  • DoorDash: American food delivery platform that operates in Latin America. Investors include Kleiner Perkins, Coatue Management, and SoftBank Group.
  • Swiggy: Indian food delivery platform that operates in Latin America. Investors include Naspers, Accel, and SAIF Partners.
  • Ele.me: Chinese food delivery platform that operates in Latin America.

Major investors


Naspers: A South African media and internet company that has invested in a number of food delivery platforms in Latin America, including iFood in Brazil and PedidosYa in Argentina.

  • SoftBank: A Japanese multinational conglomerate that has invested in food delivery platforms in Latin America, including Rappi in Colombia and Mexico.
  • DST Global: A venture capital firm that has invested in food delivery platforms in Latin America, including iFood in Brazil and Glovo in Argentina.
  • Sequoia Capital: A venture capital firm that has invested in food delivery platforms in Latin America, including iFood in Brazil and PedidosYa in Argentina.
  • Y Combinator: A startup accelerator that has invested in food delivery platforms in Latin America, including PedidosYa in Argentina and Glovo in Mexico.
  • Accel: A venture capital firm that has invested in food delivery platforms in Latin America, including iFood in Brazil and Glovo in Argentina.
  • Tiger Global Management: A hedge fund that has invested in food delivery platforms in Latin America, including Rappi in Colombia and iFood in Brazil.
  • Kaszek Ventures: A venture capital firm that has invested in food delivery platforms in Latin America, including Rappi in Colombia and Glovo in Argentina.
  • Andreessen Horowitz: A venture capital firm that has invested in food delivery platforms in Latin America, including Glovo in Argentina and iFood in Brazil.
  • Insight Partners: A private equity firm that has invested in food delivery platforms in Latin America, including Glovo in Argentina and iFood in Brazil.

There are several local investors based in Latin America that have invested in the food delivery market. Some examples include:

  • Monashees: A Brazilian venture capital firm that has invested in food delivery start-ups such as iFood and 99.
  • Kaszek Ventures: A Latin American venture capital firm that has invested in food delivery start-ups such as PedidosYa and Rappi.
  • ALLVP: A Mexican venture capital firm that has invested in food delivery start-ups such as Cornershop and Sin Delantal.
  • NXTP Labs: An Argentine venture capital firm that has invested in food delivery start-ups such as PedidosYa and Glovo.
  • Magma Partners: A Chilean venture capital firm that has invested in food delivery start-ups such as Cornershop and PedidosYa.
  • Market share and competitive landscape

In the Latin American food delivery market, the competition is intense, with many players vying for a share of the market. The market is dominated by global players like Uber Eats and Deliveroo, which have a strong presence in the region. However, there are also many local players, such as Sin Delantal in Mexico and PedidosYa in Argentina, that have been able to capture a significant share of the market.

In terms of market share, it is difficult to accurately quantify as there is no public data available for all players in the market.However, according to estimates, Rappi holds the largest market share in the region, followed by Glovo and Uber Eats. Other significant players include Sin Delantal in Mexico, PedidosYa in Argentina, and iFood in Brazil.

The competitive landscape in the Latin American food delivery market is constantly evolving, with new players entering the market and existing players expanding their operations. This has led to intense price competition and a focus on customer acquisition, with companies offering promotions and discounts to attract new customers. Despite the intense competition, there is still room for growth in the market, with many consumers in the region still not using food delivery services.

Market trends and drivers

  • Increasing adoption of mobile payment technologies

Mobile payment technologies are becoming increasingly popular in Latin America, as more and more people are seeking convenient and secure ways to make financial transactions. One of the main factors driving the adoption of these technologies is the low level of financial inclusion in the region. Many people in Latin America do not have access to traditional financial services, such as bank accounts and credit cards, making it difficult for them to participate in the formal economy. Mobile payment technologies provide an alternative way for these individuals to make financial transactions, allowing them to participate in the digital economy and access a wider range of goods and services.

Another factor driving the adoption of mobile payment technologies in Latin America is the growing demand for convenience. People are increasingly looking for ways to make their lives easier and more efficient, and mobile payment technologies offer a quick and convenient way to make financial transactions. For example, instead of having to go to a bank or an ATM to withdraw cash, people can use their mobile phones to make payments and transfer money instantly. This is especially appealing in Latin America, where many people live in areas that are not served by traditional financial institutions.

There are also several other factors contributing to the increasing adoption of mobile payment technologies in Latin America. These include the proliferation of mobile phones and the growing popularity of e-commerce, which has made it easier for people to make online purchases. Additionally, there has been a push by governments and regulatory bodies in the region to promote the use of mobile payment technologies as a way to increase financial inclusion and improve economic development.

Overall, the adoption of mobile payment technologies in Latin America is being driven by a combination of factors, including the low level of financial inclusion, the demand for convenience, and the proliferation of mobile phones and e-commerce. As these technologies continue to evolve and improve, it is likely that their adoption will continue to grow in the region

  • Growing demand for convenience

The demand for convenience is increasing in Latin America as more people are seeking out ways to simplify their lives and save time. This is particularly true in urban areas, where busy lifestyles and long work hours can make it difficult to take care of everyday tasks and errands. To meet this demand, companies in a variety of industries are introducing new products and services that make it easier for people to get what they need quickly and easily.

For example, the rise of e-commerce platforms such as Amazon and MercadoLibre has made it easier for people to shop online and have their purchases delivered to their doorstep. Similarly, the growth of food delivery platforms such as UberEats and Rappi has made it easier for people to have meals from their favorite restaurants delivered to their homes or office.

The adoption of mobile payment technologies has also contributed to the trend toward convenience in Latin America. With the ability to make payments using their smartphones, people are able to make purchases and transfer money without the need for cash or credit cards. This has made it easier for people to pay for things on the go and has opened up new opportunities for businesses to reach customers in different parts of the country.

Overall, the growing demand for convenience in Latin America presents both challenges and opportunities for businesses. On the one hand, companies need to find ways to meet the needs of customers who are looking for easy and convenient solutions. At the same time, however, they also need to be aware of the potential risks and challenges that come with introducing new technologies and services, such as data security and privacy concerns.

  • Low level of financial inclusion in Latin America

The low level of financial inclusion in Latin America can be attributed to several factors. One major factor is the lack of access to financial services, particularly in rural and remote areas. Many people in these areas do not have access to traditional banking services, such as bank branches or ATMs, and therefore cannot open bank accounts or access credit. Additionally, many people in Latin America do not have the necessary documentation, such as identification documents or proof of income, to open a bank account or access credit.

Other factors that contribute to low financial inclusion in Latin America include low levels of financial literacy, distrust of financial institutions, and high fees for financial services. Many people in Latin America may not understand how to use financial services or may be hesitant to use them due to past experiences or lack of awareness. Additionally, financial institutions may charge high fees for their services, making them inaccessible or unaffordable for some people.

Overall, the low level of financial inclusion in Latin America presents both challenges and opportunities. On the one hand, it limits the ability of many people to access the financial services they need to improve their lives and grow their businesses. On the other hand, it represents a significant opportunity for financial institutions and fintech companies to develop innovative solutions that can reach and serve underserved populations.

  • Increasing adoption of smartphones

The adoption of smartphones in Latin America has been on the rise in recent years, and this trend is expected to continue in the coming years. According to data from the International Data Corporation (IDC), the number of smartphone users in Latin America is expected to reach 456 million by 2024, representing a compound annual growth rate of 5.5%.

There are several factors driving the adoption of smartphones in Latin America. One of the main factors is the increasing affordability of smartphones, as prices have been steadily decreasing in recent years. This has made it possible for a larger portion of the population to afford smartphones, especially in countries where incomes are lower.

Another factor is the increasing availability of mobile internet services, which has made it easier for people to access the internet and use their smartphones for a variety of purposes, including communication, entertainment, and commerce.

Finally, the increasing popularity of mobile payment technologies in Latin America is also driving the adoption of smartphones, as these technologies are typically used through mobile apps that require a smartphone to access them. By using mobile payment technologies, people are able to make payments, transfer money, and access a variety of financial services without the need for a traditional bank account or credit card.

  • Government support and incentives for financial inclusion

Government support and incentives for financial inclusion in Latin America have played a significant role in driving the adoption of mobile payment technologies in the region. Many governments in Latin America have implemented policies and programs to promote financial inclusion and encourage the use of digital financial services.

One example is the Central Bank of Brazil’s “National Financial Inclusion Strategy,” which aims to increase the number of individuals and small businesses with access to financial services. As part of this strategy, the central bank has implemented initiatives such as the “National Plan for the Development of Financial Education,” which aims to educate the public about financial concepts and the use of digital financial services.

In addition, many Latin American governments have implemented regulatory frameworks to support the growth of mobile payments and other digital financial services. For example, the Colombian government has established a regulatory sandbox for fintech firms, which allows them to test new products and services in a controlled environment before launching them to the public.

Overall, government support and incentives have played a key role in driving the adoption of mobile payment technologies in Latin America and increasing financial inclusion in the region.

Mexico: In Mexico, the government has implemented several initiatives to promote financial inclusion, including the creation of a national program for financial education, the expansion of access to banking services in rural and underserved areas, and the establishment of a government-run financial institution to provide low-cost loans to small businesses and individuals.

Argentina: In Argentina, the government has implemented several initiatives to increase access to financial services, including the creation of a national program for financial education, the expansion of access to banking services in rural and underserved areas, and the implementation of a national ID card system to facilitate the opening of bank accounts.

Chile: In Chile, the government has implemented several initiatives to increase financial inclusion, including the expansion of access to banking services in rural and underserved areas, the creation of a national program for financial education, and the implementation of a national ID card system to facilitate the opening of bank accounts.

Peru: In Peru, the government has implemented several initiatives to promote financial inclusion, including the expansion of access to banking services in rural and underserved areas, the creation of a national program for financial education, and the establishment of a government-run financial institution to provide low-cost loans to small businesses and individuals.

Uruguay: In Uruguay, the government has implemented several initiatives to increase financial inclusion, including the expansion of access to banking services in rural and underserved areas, the creation of a national program for financial education, and the implementation of a national ID card system to facilitate the opening of bank accounts.

Challenges and opportunities

  • Competition with traditional delivery methods

The food delivery market in Latin America is facing competition from traditional delivery methods, such as home delivery by restaurants themselves or by third-party companies. These traditional methods have been established for a longer period of time and have a loyal customer base. Online food delivery platforms and on-demand meal delivery services are relatively new in the region and are still trying to gain a significant share of the market.

Additionally, there is also competition from grocery delivery services, which allow customers to have their groceries delivered to their homes. This competition is especially strong in countries where grocery delivery services have been well-established, such as Brazil and Mexico.

Overall, the food delivery market in Latin America is highly competitive and players will need to constantly innovate and differentiate themselves in order to stand out from the competition.

  • Regulatory challenges

Regulatory changes can have a significant impact on the food delivery market in Latin America. For example, in some countries, there may be rules and regulations that govern how food delivery companies can operate, including issues such as health and safety, labor laws, and taxation. These regulations can vary from country to country, and it is important for food delivery companies to ensure that they are complying with all relevant laws and regulations in order to avoid any legal issues.

In addition to government regulations, food delivery companies may also face competition from traditional delivery methods, such as restaurants delivering food directly to customers. This can create additional challenges for food delivery companies, as they may have to compete with established players in the market.

Overall, the regulatory environment and competition with traditional delivery methods can have a significant impact on the success of food delivery companies in Latin America. It is important for these companies to stay up-to-date with any changes in the regulatory landscape and to be proactive in addressing any challenges that may arise.

  • In Mexico, the government has implemented measures to regulate the use of electric bikes and scooters by food delivery companies, including requiring delivery workers to have a special license and insurance coverage.
  • In Brazil, the government has implemented stricter regulations on the use of delivery apps, requiring companies to register with the Ministry of Labor and pay social security contributions for their workers.
  • In Argentina, the government has implemented measures to regulate the use of apps by food delivery companies, including requiring companies to register with the Ministry of Labor and pay social security contributions for their workers.
  • In Chile, the government has implemented measures to regulate the use of apps by food delivery companies, including requiring companies to register with the Ministry of Labor and pay social security contributions for their workers.
  • In Peru, the government has implemented measures to regulate the use of apps by food delivery companies, including requiring companies to register with the Ministry of Labor and pay social security contributions for their workers.
  • In Uruguay, the government has implemented measures to regulate the use of apps by food delivery companies, including requiring companies to register with the Ministry of Labor and pay social security contributions for their workers.

  • Increasing demand for healthy and sustainable options

  • The demand for healthy and sustainable options in the food delivery market in Latin America has been increasing in recent years. This can be seen in the growing popularity of meal delivery services that offer organic, locally-sourced, and vegetarian options. Some food delivery platforms have even partnered with nutritionists and health experts to create specialized menus and meal plans for customers looking to maintain a healthy lifestyle.
  • There is also a trend towards sustainability in the food delivery industry in Latin America, with many companies looking to reduce their environmental impact. This can be seen in the use of eco-friendly packaging, the promotion of local and small businesses, and the implementation of carbon offsetting programs. Some food delivery platforms have even started using electric vehicles or bicycles to deliver orders, as a way to reduce their carbon footprint.
  • Overall, the increasing demand for healthy and sustainable options in the food delivery market in Latin America presents both challenges and opportunities for companies operating in the region. On one hand, it can be challenging for companies to meet the diverse and evolving needs of customers, while also maintaining profitability. On the other hand, there is a growing market for these types of options, and companies that are able to successfully meet this demand may be able to differentiate themselves from their competitors and capture a larger share of the market.
  • Increase in urbanization and busy lifestyles

The increase in urbanization and busy lifestyles in Latin America has played a significant role in the growth of the food delivery market. As more people move to cities and have less time to prepare meals due to work and other commitments, there is a higher demand for convenient options such as food delivery. This trend is especially prevalent among younger consumers who are more likely to use food delivery platforms and on-demand meal delivery services. The busy lifestyles of these consumers also contribute to the popularity of subscription-based meal delivery services, as they offer a convenient way for people to have healthy meals delivered to their doorstep on a regular basis.

According to data from the United Nations, the urbanization rate in Latin America has steadily increased over the past several decades. In 1950, approximately one-third of the population in the region was urban, and this figure had risen to around three-quarters by the year 2000. Today, approximately 80% of the population in Latin America is considered urban, with some countries having even higher rates. For example, in Argentina and Uruguay, over 90% of the population is considered urban, while in Brazil, Chile, and Panama, the urbanization rate is around 85%. This trend is expected to continue in the coming years, as more and more people move to cities in search of economic opportunities and a higher quality of life.

  • Growing middle class with higher disposable incomes

The growing middle class with higher disposable incomes is a key driver of the food delivery market in Latin America. According to the World Bank, in 2018, the middle class made up approximately 45% of the population in Latin America and the Caribbean. 

This number is expected to continue to grow in the coming years, with some estimates projecting the middle class to reach over 50% by 2022. In terms of disposable income, the middle class in Latin America has seen significant growth in recent years.

 For example, in Brazil, the middle class saw a nearly 50% increase in disposable incomes between 2006 and 2017.

 Similarly, in Mexico, the middle class saw a nearly 70% increase in disposable incomes over the same period. 

This growth in disposable income is likely to lead to an increase in demand for food delivery services, as consumers will have more disposable income to spend on convenience and dining out.

  • Increasing adoption of smartphones and mobile internet

The adoption of smartphones and mobile internet has been increasing rapidly in Latin America in recent years. According to data from the International Telecommunication Union (ITU), the region saw an increase in mobile-cellular subscriptions from 82.8% in 2015 to 89.4% in 2019. This trend is expected to continue, with estimates showing that the number of mobile-cellular subscriptions in the region could reach 95.4% by 2025.

The increasing adoption of smartphones and mobile internet is being driven by a number of factors. One of the main drivers is the decreasing cost of these devices. As prices continue to fall, more and more people are able to afford smartphones, which are increasingly becoming a necessity rather than a luxury.

In addition to the decreasing cost of devices, the growing availability of mobile internet has also contributed to the increasing adoption of smartphones in the region. As mobile internet becomes more widely available, more people are able to access the internet on their smartphones, which has led to an increase in the use of these devices for a variety of activities, including shopping, banking, and communication.

The increasing adoption of smartphones and mobile internet has had a significant impact on the way people in Latin America live and work. It has made it easier for people to connect with each other, access information, and conduct business, and has also opened up new opportunities for businesses to reach customers in the region.

According to data from the International Telecommunication Union (ITU), as of 2020, the smartphone adoption rate in Latin America was as follows:

  • Argentina: 76%
  • Brazil: 61%
  • Chile: 78%
  • Colombia: 64%
  • Mexico: 72%
  • Peru: 61%
  • Uruguay: 78%

Internet penetration rates in Latin America are also on the rise. According to data from the World Bank, as of 2020, internet penetration rates in Latin America were as follows:

  • Argentina: 80%
  • Brazil: 63%
  • Chile: 90%
  • Colombia: 73%
  • Mexico: 69%
  • Peru: 60%
  • Uruguay: 90%
  • Growing demand for convenience and time-saving solutions

The demand for convenience and time-saving solutions is increasing in Latin America due to a number of factors. One of the main drivers of this trend is the growing urbanization in the region. As more people move to cities, they often have less time to spend on tasks such as grocery shopping and meal preparation, leading to a greater demand for services that can help save time and effort. Additionally, the increasing adoption of smartphones and mobile internet in the region has made it easier for people to access and use on-demand services, further driving the demand for convenience. Finally, the growing middle class in Latin America, with higher disposable incomes, is also contributing to the demand for convenience, as these consumers are willing to pay for services that can save them time and effort.

  • Expansion of food delivery platforms into new areas and services (e.g. groceries, alcohol delivery)

The expansion of food delivery platforms into new areas and services such as groceries and alcohol delivery is driven by the growing demand for convenience and time-saving solutions in Latin America. As urbanization and busy lifestyles continue to increase in the region, consumers are looking for ways to streamline their daily tasks and errands. By offering delivery services for groceries and alcohol, food delivery platforms are able to tap into this demand and provide a valuable service to their customers.

In addition, the growing middle class in Latin America, with higher disposable incomes, is also driving the expansion of these platforms into new areas. As consumers have more disposable income, they are more likely to spend on convenience and luxury items, such as home delivery of groceries and alcohol.

Overall, the expansion of food delivery platforms into new areas and services is a response to the changing needs and preferences of consumers in Latin America. By offering a wider range of products and services, these platforms are able to meet the growing demand for convenience and time-saving solutions in the region.

  • Rise of food delivery subscriptions and loyalty programs

The rise of food delivery subscriptions and loyalty programs has been a significant trend in the food delivery market in Latin America. These types of programs offer customers the opportunity to pay a fixed fee or subscription price in exchange for regular delivery of meals or other food items. This model has proven to be popular with consumers who want the convenience of having food delivered to them on a regular basis without having to place individual orders each time. Additionally, loyalty programs often offer customers discounts, rewards, and other perks for their continued use of the service. These programs can help food delivery platforms differentiate themselves from competitors and encourage customer loyalty.

Here are a few examples of food delivery companies in Latin America that offer subscriptions and loyalty programs:

  • Rappi: A Colombian food delivery platform that offers a subscription service called “RappiPrime,” which allows users to get free delivery and discounts on certain products.
  • Glovo: A Spanish food delivery platform that operates in several Latin American countries, including Argentina, Chile, and Peru. Glovo offers a loyalty program called “GlovoX,” which allows users to earn points for every order and redeem them for discounts and other perks.
  • Sin Delantal: A Mexican food delivery platform that offers a subscription service called “Sin Delantal Plus,” which includes free delivery, discounts on certain products, and exclusive deals.
  • PedidosYa: An Argentine food delivery platform that offers a loyalty program called “Club PedidosYa,” which allows users to earn points for every order and redeem them for discounts and other perks.
  • iFood: A Brazilian food delivery platform that offers a subscription service called “iFood Express,” which includes free delivery and discounts on certain products.
  • Deliveroo: A British food delivery platform that operates in several Latin American countries, including Argentina, Chile, and Mexico. Deliveroo offers a subscription service called “Deliveroo Plus,” which includes free delivery and discounts on certain products.
  • Growing competition and partnerships between food delivery platforms and restaurants

The food delivery market in Latin America has seen a significant increase in competition and partnerships between food delivery platforms and restaurants. These partnerships often involve the food delivery platform offering marketing and logistical support to the restaurant in exchange for a percentage of sales. This can be beneficial for both parties, as the food delivery platform can increase its offerings and the restaurant can increase its reach and sales. One example of this is the partnership between the food delivery platform Rappi and McDonald’s in Brazil. Rappi offers delivery services for McDonald’s, helping the fast food chain expand its reach and convenience for customers. Similarly, in Mexico, the food delivery platform Sin Delantal has partnerships with various restaurants, including KFC and Burger King. These partnerships have helped both the food delivery platforms and the restaurants to increase their market share and revenue in the highly competitive food delivery market.

  • Increasing use of technology and data analytics in operations and marketing

The food delivery market in Latin America has seen increasing use of technology and data analytics in operations and marketing in recent years. This trend has allowed companies to streamline their processes, improve efficiency, and better target their marketing efforts. For example, many food delivery platforms now use algorithms to optimize delivery routes and predict demand, which helps to reduce costs and improve customer satisfaction. Additionally, the use of data analytics has allowed companies to better understand their customer base and tailor their marketing efforts to specific segments, resulting in more targeted and effective campaigns. In addition to these operational benefits, the use of technology and data analytics has also helped to improve the overall user experience for customers, making it easier for them to order and track their deliveries. Overall, the increasing use of technology and data analytics in the food delivery market in Latin America is a major driver of growth and will continue to be a key area of focus for companies in the region.

  • Impact of COVID-19 on the food delivery market (e.g. shift to online ordering, increase in delivery services)

The COVID-19 pandemic had a significant impact on the food delivery market in Latin America. One of the main impacts was a shift towards online ordering as people were required to stay at home and avoid physical contact with others. This led to an increase in the use of food delivery platforms as a convenient way to order food from restaurants. Many restaurants also began offering delivery services for the first time as a way to adapt to the new situation.

The pandemic also led to an increase in demand for delivery services as people became more hesitant to dine out in public places. This was particularly evident in the early stages of the pandemic when many restaurants were forced to close or operate at reduced capacity. As a result, food delivery platforms saw an increase in orders and revenue.

In addition to the shift towards online ordering and increased demand for delivery services, the pandemic also led to changes in the way food delivery platforms operated. Many companies implemented measures to ensure the safety of their drivers and customers, such as contactless delivery and the use of personal protective equipment (PPE). Some platforms also introduced new features to accommodate the changing needs of customers, such as the ability to order from a wider range of retailers (e.g. supermarkets) or the option to schedule deliveries in advance.

Overall, the COVID-19 pandemic had a significant impact on the food delivery market in Latin America, leading to changes in consumer behavior and the way companies operated. It remains to be seen how these changes will continue to shape the market in the post-pandemic era.

  • Government support and incentives for financial inclusion and digitalization in the food delivery market (e.g. tax breaks, grants, partnerships)

Government support and incentives for financial inclusion and digitalization in the food delivery market have played a significant role in the growth of the industry in Latin America. In many countries, governments have implemented tax breaks and grants for companies operating in the food delivery space, as well as partnerships with these companies to promote the adoption of digital payment methods.

One example is in Brazil, where the government has launched initiatives such as the “Nota Fiscal Paulista” program, which offers tax breaks to companies that adopt electronic invoicing systems and digital payment methods. This has helped to encourage the adoption of digital payments in the food delivery industry, as well as promote financial inclusion among small and medium-sized businesses.

Similarly, in Mexico, the government has implemented initiatives such as the “Digital Inclusion Fund” which provides grants and technical assistance to small and medium-sized businesses to help them adopt digital technologies, including those related to the food delivery industry.

Another example of government support and incentives for financial inclusion and digitalization in the food delivery market is the creation of special zones or designated areas for food delivery services in cities. This allows food delivery platforms to operate more efficiently and reduces congestion in high-traffic areas. Another example is the implementation of regulations that require restaurants to offer online ordering and delivery options in order to receive certain permits or licenses. This helps to encourage the adoption of digital technologies in the food delivery market and promotes the growth of online ordering platforms.

Overall, government support and incentives for financial inclusion and digitalization in the food delivery market have helped to promote the adoption of digital payment methods, increase access to financial services, and drive the growth of the industry in Latin America.

  • Investment and partnerships with foreign companies and venture capital firms

The food delivery market in Latin America has seen a significant influx of investment and partnerships with foreign companies and venture capital firms in recent years. These partnerships and investments have helped to fuel the growth of the market and have allowed food delivery platforms to expand their operations, develop new technologies, and offer more diverse and innovative services to their customers.

One example of a foreign company investing in the Latin American food delivery market is Uber, which acquired the Brazilian food delivery platform, 99, in 2017. This acquisition allowed Uber to enter the Latin American market and tap into the growing demand for food delivery services in the region.

Another example is the Chinese food delivery giant, Meituan, which has made several investments in Latin American food delivery platforms, including the Brazilian platform, iFood, and the Mexican platform, Sin Delantal. These investments have allowed Meituan to expand its operations and gain a foothold in the Latin American market.

Venture capital firms have also played a significant role in the growth of the food delivery market in Latin America. For example, the Colombian food delivery platform, Rappi, has received funding from a number of venture capital firms, including Andreessen Horowitz and DST Global. This funding has allowed Rappi to expand its operations and solidify its position as one of the leading food delivery platforms in the region.

Overall, investment and partnerships with foreign companies and venture capital firms have been a key driver of growth for the food delivery market in Latin America, and are likely to continue to play a significant role in the future development of the market.

  • Challenges faced by food delivery platforms (e.g. high operating costs, regulatory issues, competition)

The food delivery market in Latin America faces several challenges, including high operating costs, regulatory issues, and competition.

High operating costs: Food delivery platforms face high operating costs due to the need to maintain a fleet of delivery vehicles, hire and train delivery personnel, and pay commissions to restaurants. These costs can eat into profitability, especially for smaller platforms that are unable to achieve economies of scale.

Regulatory issues: Food delivery platforms must navigate a complex regulatory landscape in each country in which they operate. This includes obtaining necessary licenses and permits, complying with food safety regulations, and dealing with local labor laws. These regulatory issues can be a barrier to entry for new players and can also increase operating costs for existing platforms.

Competition: The food delivery market in Latin America is highly competitive, with many local and international players vying for market share. This intense competition can lead to price wars, which can impact profitability and can also make it difficult for new entrants to differentiate themselves from established players.

  • Opportunities for partnerships and expansion

There are several opportunities for partnerships and expansion for food delivery platforms in Latin America. One potential opportunity is to partner with local restaurants and small businesses to expand their reach and offer a wider variety of options to customers. Food delivery platforms can also expand into new areas and offer new services, such as groceries, alcohol delivery, or meal subscription plans. Another opportunity for expansion is to expand into underrepresented markets, such as rural areas or areas with low internet penetration. Additionally, food delivery platforms can tap into the growing demand for healthy and sustainable options by partnering with organic farms, plant-based restaurants, or other environmentally-conscious businesses. By building partnerships and expanding their offerings, food delivery platforms can attract new customers and stay competitive in the market.

There are several other factors that contribute to the growth of the food delivery market in Latin America:

  • Rising tourism:

As Latin America becomes a more popular tourist destination, there is an increase in demand for food delivery services from both tourists and locals.
The rise in tourism in Latin America presents an opportunity for food delivery platforms to tap into this growing market. Tourists often rely on food delivery services to have meals delivered to their hotel or vacation rental, and may also use these services to discover local restaurants and cuisines. Additionally, as more tourists visit the region, there is likely to be an increase in demand for food delivery from locals looking to cater to the needs of tourists in their area. This presents an opportunity for food delivery platforms to partner with local restaurants and tourism businesses to expand their reach and offer a wider range of services.


Conclusion and future outlook

  • Summary of key points
  • Future trends and potential developments in the food delivery market in Latin America

The food delivery market in Latin America has seen significant growth in recent years, driven by a variety of factors including the increasing urbanization and busy lifestyles of consumers, the growing middle class with higher disposable incomes, and the increasing adoption of smartphones and mobile internet in the region. Food delivery platforms have also benefited from the expansion into new areas and services, such as groceries and alcohol delivery, and the rise of food delivery subscriptions and loyalty programs.

However, the market has also faced a number of challenges, including high operating costs, regulatory issues, and intense competition. The COVID-19 pandemic has also had a significant impact on the market, leading to a shift towards online ordering and an increase in delivery services.

Despite these challenges, there are also numerous opportunities for partnerships and expansion in the food delivery market in Latin America. Government support and incentives for financial inclusion and digitalization, as well as investment and partnerships with foreign companies and venture capital firms, have helped to boost the market. The rising tourism industry in the region is also expected to drive further growth in the food delivery market.

In the future, it is likely that we will see further developments in the use of technology and data analytics by food delivery platforms, as well as increased competition and partnerships with restaurants. It is also possible that we will see a continuation of the trends towards healthy and sustainable options, and the growth of food delivery subscriptions and loyalty programs.

Overall, the food delivery market in Latin America shows strong potential for continued growth and development in the coming years.

Key Points:

  • The food delivery market in Latin America has seen significant growth in recent years, driven by a variety of factors including increasing urbanization and busy lifestyles, the growing middle class, and the increasing adoption of smartphones and mobile internet.
  • Food delivery platforms have benefited from expanding into new areas and services, and the rise of subscriptions and loyalty programs.
  • The market has faced challenges including high operating costs, regulatory issues, and intense competition. The COVID-19 pandemic has also had a significant impact on the market.
  • There are opportunities for partnerships and expansion in the market, aided by government support and incentives, investment from foreign companies and venture capital firms, and the growing tourism industry.
  • In the future, we can expect further developments in the use of technology and data analytics, increased competition and partnerships with restaurants, and a continuation of trends towards healthy and sustainable options and the growth of subscriptions and loyalty programs.

Future Trends and Potential Developments:

  • Continued use of technology and data analytics in operations and marketing
  • Further expansion into new areas and services (e.g. groceries, alcohol delivery)
  • Increased competition and partnerships with restaurants
  • Continued growth of subscriptions and loyalty programs
  • Continued focus on healthy and sustainable options
  • Continued impact of COVID-19 on the market (e.g. shift towards online ordering, increased delivery services)
  • Possible government support and incentives for financial inclusion and digitalization in the market (e.g. tax breaks, grants, partnerships)
  • Potential for further investment and partnerships with foreign companies and venture capital firms.