Meituan to Launch Keeta in Brazil With $1 Billion Investment

Meituan will invest $1 billion into the Brazilian market over the next five years to launch its Keeta food delivery platform, marking a significant expansion of the Chinese giant’s international footprint [1]. The move targets a delivery sector projected to reach $20.9 billion in revenue by the end of 2025, setting the stage for a direct confrontation with the country’s dominant incumbent, iFood [2].

The Competitive Landscape

Meituan’s entry into Brazil follows a successful rollout of the Keeta brand in the Gulf, where it expanded to all major Saudi cities within four months of its September 2024 debut [1]. The company, which reported $12 billion in revenue for the first quarter of 2025—up from $10.2 billion in the same period last year—is bringing a strategy centered on aggressive consumer discounts and lower fees for restaurant partners [2].

Currently, the Brazilian delivery market is heavily consolidated. iFood controls over 80% of the market, supported by a network of 400,000 restaurants and 55 million clients [2]. While iFood charges restaurants up to 27% per order, Meituan aims to gain traction by undercutting these commissions and recruiting small businesses that have historically struggled with high costs [2]. The competitive environment is further intensifying as Didi-owned 99Food recently announced a return to the market with a $180 million investment, while iFood and Uber have formed a strategic partnership to integrate their services [2].

Operational Strategy

Meituan’s expansion plan includes the recruitment of 100,000 delivery personnel, 1,000 workers, and 4,000 call center operators during its first year of operations in Brazil [2]. The company intends to leverage its experience in digital services to build a nationwide on-demand delivery network, providing local partners with marketing and digital tools [1].

Industry analysts suggest that while iFood is expected to maintain its lead in the short term, the influx of capital from Chinese firms could fundamentally transform the sector over the next decade [2]. The arrival of new competition has already prompted discussions regarding potential fee reductions and improved product offerings for restaurants, though some labor advocates warn that the initial high pay for delivery workers may stabilize as the market matures [2].

What to watch

• Market Share Shifts: Monitor whether Meituan’s lower-fee model successfully lures restaurants away from iFood’s 80% market share.
• Labor Dynamics: Observe the impact of Meituan’s hiring targets on local delivery worker wages compared to iFood’s current pay rate of $1.19 to $1.37 per delivery.
• Incumbent Response: Watch for further defensive maneuvers from the iFood-Uber alliance as Keeta begins its rollout in the coming months.

Whether Meituan can replicate its Hong Kong success—where it displaced Deliveroo to become the second-largest app—remains the central question for the Brazilian delivery industry. The success of this $1 billion push will likely depend on the company's ability to balance aggressive growth tactics against the entrenched dominance of local incumbents.