Delivery of meals in America. He ate it: how iFood became the leader in food delivery in Latin America. Food delivery for cooking in New York

The second birthplace of pizza after Italy is America, although Americans are sure that the popularity of pizza is solely their merit. What the Italian expatriates who have opened their shops and pizzerias in Boston, New York or Chicago have really succeeded in is pizza delivery in America. One of the first take-away pizzas was the pizzerias Sbarro, Papa John's, Pizza Hut and Domino's Pizza. We all know and love their products well, even though they are so different.

The way America loves pizza is not loved in any country in the world. On the Internet, you can find many sites that combine network and single pizzerias in each city. The most popular and convenient pizza delivery search engine in America is eat24hours.com. By the way, there is not only pizza, but also sushi, burgers, barbecue, American and Mexican food, pancakes and coffee - all with delivery anywhere in the city. Enter in the search bar on home page address, select pizza from the food categories, price level in the menu and click "find restaurants".


1. New York

There are over 1,000 delivery restaurants in New York prepared food, of which almost a fifth offers Italian cuisine. Pizza delivery in America is free, the minimum order amount in different cafes starts from $8. For example, Papa John's Pizzeria in New York has a menu of 12 pizzas starting at $8.99. Shipping starts from $10. There is a pickup service, which in a more familiar expression is called take-away. Of course, when buying pizza pickup minimum amount no order.


2. Los Angeles

More than 300 restaurants in Los Angeles have their own staff of couriers and prepare take-away food. About 50 delivery services specialize in pizza. Many pizzerias won't take orders below $20. If you can pick up your order yourself, there is no minimum amount. Pizzerias that only work for pickup:

  1. pizzeria Casa Nostra (average pizza preparation time is half an hour; Margarita - $ 14; the menu has a lot of salads, pasta and hot chicken),
  2. pizzeria Hard Times Pizza (Pizza Margherita - $ 12.25, Caesar salad - only $ 3; a large selection of salads, pasta, snacks; the order is prepared from 10 minutes to half an hour),
  3. Sbarro Pizzeria (there is a night and day menu; pizza is sold in slices, but it is possible to order one pizza as a whole; a slice of branded New York pizza costs $ 3.29).

3. Boston

In the homeland of Sbarro, there are no problems with pizza delivery now, not like half a century ago. Most of Boston's pizzerias don't deliver pizza, but they can make it for you to take away. Cappy's Pizza & Subs pizzeria has its own delivery service. Delivery time is 45-60 minutes. Margherita pizza costs $ 11.99.

Ordering a delicious lunch at home or at work is a small gastronomic pleasure that almost everyone allows themselves from time to time. Someone chooses a large and hot pizza, others choose light and harmonious Japanese dishes, others choose something more “homemade”, for example, a simple soup with noodles and meat in addition to a vegetable salad.


And there are incredibly many different delivery services even in small towns - they all compete with each other, constantly imposing on themselves (and setting up customers for this) more and more stringent requirements for the quality / taste of products, service, marketing and loyalty to the consumer.


The laws of the market - there's nothing you can do about it! But this only plays into the hands of simple "eaters" who are constantly looking for where they will deliver the most delicious lunch at the most affordable price in the city.


But not all companies follow the beaten track. There are some very funny and unusual concepts in the world related to food delivery - these are the ones we will tell you about today.

"We will deliver right into the traffic jam"



For Europe and the USA, this is surprising, but for a number of Asian countries, this situation can even be called normal - your delicious lunch is delivered not to your home or office (as we are used to), but to an approximate geolocation point, that is, directly to the car, for example.


In the largest cities (like Jakarta, Bangkok or Manila), drivers order a small hot lunch or a whole "box" of food for the day directly into the traffic jam, naming the car number, street and approximate location, counting on the fact that the courier will bring everything in approximately 30- 40 minutes.


Such delivery services, as a rule, are represented by a huge number of cafes throughout the metropolis, which allows you to respond very quickly to orders, deliver food on time and not inflate prices, keeping them at a competitive level.

"We ship from anywhere"

And such a concept appeared in India, then spreading to Bangladesh and the countries of Southeast Asia. Some delivery services do not “produce” anything, but they will happily bring any food from anywhere in the city at an agreed price. Conditionally - you can order fried chicken, and couriers will search for it.


However, this approach did not glorify this category of deliveries. The system has taken root best of all: “we bring it from home”. So, if the wife of a bank clerk in Delhi decides to cook a delicious homemade dinner for her husband, she can send it to the office by contacting a special company - everything is delivered quickly and in special containers.

"What we bring, then eat"



Such deliveries are 100% "history" for outrageous personalities. They are popular in many countries, but they are especially respected in the student cities-regions of England, Scotland, the USA and Germany.


The point is simple. You call the company, name the amount of money (usually it should be more than 30-40 dollars / pounds) and some reason, for example - a romantic date. After an hour and a half, the courier brings you an absolutely “author's” set of products, which can contain both ready-made snacks and products for preparing a particular dish.


A big plus of such services is real creativity - they can bring you something that you yourself would never guess to order.

"The usual in an unusual way"

Everything is much simpler here. These non-standard deliveries are engaged in the fact that they carry enough "everyday" food in a not the most familiar form. It seems to be nothing special, but for some it really “catches”.


You can get a huge triangular pizza, an uncut roll that has to be eaten whole (like a shawarma), or some Mexican food stylized as cake desserts. Boundless flight of fancy.

"We deliver and serve"



In some ways, such a system is similar to catering, but the differences are significant. In the case of "serving delivery" you do not need to organize or plan anything in advance - as always, you simply order, for example, a hot dinner for a certain amount and additionally pay for the services of a waiter (some companies may send a cook, sommelier, dishwasher) .


It is quite expensive, but it makes a strong impression - a trained person will open all the bags, transfer the dishes to your favorite dishes, serve everything to the table, refill the drinks, and then remove the empty plates.


All this, of course, is a very non-standard delivery - and in "ordinary" cases (especially in Russia) it would hardly make sense to turn to something like that. The vast majority of "real needs" are simply the delivery of really delicious meals made from quality ingredients. To be fast, hot and not very expensive. All these requirements are met by the Dostaevsky service operating in Moscow and St. Petersburg - round-the-clock free delivery of a wide variety of dishes: from Japanese cuisine to cakes. Try to place an order - the level of service will pleasantly surprise you!


The director of the largest Latin American food tech company told RBC what he would spend $500 million on and why the company would not compete with Russian delivery services

Carlos Moises (Photo: personal archive)

“My mom taught me and my sister how to cook, but I won’t teach my kids how to cook,” says Carlos Moizes, CEO of Brazilian food delivery service iFood. People stop cooking at home: in developed countries even new residential buildings are built without kitchens. It's not just a big city trend, it's a story all over the place." Moises considers the generosity of investors to be the best argument in favor of his words: in November 2018, iFood raised $500 million during the next investment round.

Seven years ago, the service started with 30 orders for food delivery from Sao Paulo restaurants per day. It is now the largest Latin American food tech company with 390,000 daily orders in Brazil, Mexico and Colombia. “No one has any idea how big the potential food delivery market is,” says Moises. At the FuturEcommerce conference organized by Mail.Ru Group, Moises told RBC how the project became a leader on its continent and explained what he was going to invest in.

Gone for delivery

41-year-old Carlos Moises was born in the most populated city in the Southern Hemisphere - Sao Paulo. Here, at the Pontifical Catholic University, he received an education in business administration. Moises began his career as a financial analyst at the Brazilian Banco Safra. Employment experience was not very successful: "I was a small cog in big companies, and I wanted to work for myself."

In the early 2000s, he opened a small consulting agency, but despite several years of hard work, the agency did not bring in much money. Moises decided to try his hand at other niches. In 2007, he launched a company that did outsourcing technical support for the casino. This time, things picked up quickly. “The segment of the casino market in Brazil was very large then,” says the entrepreneur. But the rise was followed by a fall: the state took up the regulation of this area, and Moises had to close the company. The entrepreneur worked for several years as a manager in the Brazilian division of the Spanish online travel agency and coupon seller Groupalia. In 2012, the company was taken over by local player Peixe Urbano. “After the deal, the business stopped growing. I lost interest in him and left,” recalls Moises.

Immediately after the story with Groupalia, he got a job as a financial manager at RestauranteWeb, a food delivery service that had just appeared in Brazil, a project of Just-Eat, a large European holding (founded in Denmark in 2001). So the entrepreneur got into food tech. “In the US and Europe, this market was growing at a high rate, and I was convinced that it would soon take off here too,” he says. Much has been said in favor of this. Brazil has a huge and rapidly growing middle class of 113 million people (since 2003 this segment of the population has grown by 40%). At the same time, most middle-income people do not have a personal car, and public transport poorly developed. All this made the emerging delivery services very popular.

In 2014, the attention of Moises, who managed to grow up to the general manager of Just-Eat for Brazil, was attracted by a young, but already winning a certain audience, startup iFood. The service was created by several entrepreneurs from São Paulo back in 2011 as an additional sales channel for the food magazine Disk Cook. At first, the publication invited readers to order food from partner restaurants by phone. Then the partners made a special delivery site, and then launched a mobile application. When the number of orders reached several hundred per day, the Brazilian venture capital fund Warehouse Investimentos invested $1.6 million in the service. And by mid-2014, the project raised another $4.6 million from the Latin American telecommunications company Movile, which bought 50%.

The telecoms giant was known for its flair for innovation: in the early 2000s, for example, it was one of the first to make text messaging available in Brazil, which other cellular companies saw as an uninteresting toy. But Moises, who suggested that Just-Eat's Brazil management team merge with iFood, had other reasons to be interested in the startup: “Even then, iFood was overtaking RestauranteWeb in reach, so the deal was a smart move to strengthen local market positions for both parties.”

As part of the merger in September 2014, Just-Eat invested about $5.7 million in iFood. As a result, the European service received a 25% stake in the company, 50% of the shares remained with Movile, and another 25% with the founders of iFood. Moises spearheaded a rapidly growing project.


Carlos Moises (Photo: personal archive)

"Application for any person"

Thanks to the first investment, by the end of 2014, the service increased the number of orders by more than 10 times, to almost 500 thousand per month, and, according to its own estimates, took 80% of the Brazilian online food delivery market.

Moises explains this success by betting on a mobile application and aggressive marketing. “From the very start, iFood began to adhere to the principle of mobile first - first we made a mobile application, and then we took up the site,” says the entrepreneur. “Today we do the same: first we develop technologies for the application, and then we implement them in the desktop version.”

Now many Brazilians have smartphones, and only office workers make orders from a computer. But even accustoming the inhabitants of the country to order food through the application was not easy. “People are used to doing everything through a phone call to the operator. To save our model, we had to retrain them,” says Moises.

iFood has invested the lion's share of its investments in aggressive marketing, primarily on TV and on the Internet. “In all promo campaigns, in every video, we said: “Download our app and order food!” Moises recalls. So, in one of the iFood promotional videos, where starred the famous Brazilian actor Rodrigo Gilbert compares the long wait for a response from a call center operator and an instant order through the iFood application. Almost 26 million people have watched this video on YouTube. In another video that received twice as many views, the Brazilian singer and actress Anitta danced in front of office workers dressed as a balding man. "iFood is the delivery app that's perfect for any face," read the slogan. These efforts have borne fruit: now 96% of iFood orders come through the mobile app and only 4% through the website.

But if the service was saved from the failure of the mobile application by advertising, then with the connection of restaurants to the online platform, everything turned out to be much more difficult. “For some reason, food service owners thought that since we were an online platform, they should give us discounts as coupon sales services,” says Moises. “We have been trying to convey to them for a long time that we do not need discounts, but simply their online presence on our site.” At first, Moises and his staff had to personally persuade every owner of a small restaurant or cafe to connect to the iFood system. But the promise of benefits from demand forecasting and order growth did not convince entrepreneurs.

The breakthrough came when Moises was able to negotiate with big players like PizzaHut and Domino's Pizza. “Showing the results to the kids, I said: look, since they are connected, join too, what are you afraid of,” he recalls. “It helped: at the start, only pizza could be ordered through iFood, and now we offer a choice of 28 cuisines of the world.”

Today, small restaurants become partners with the company also because it offers them to purchase products through its iFood Shop marketplace. According to Moises, prices for entrepreneurs there are on average 20% lower than when buying through alternative channels. " Marketplace iFood Shop connects more than 50,000 restaurants with more than 100 distributors,” explains Moises. - Receive best price scale allows us: iFood is the largest food tech company in Latin America. According to our calculations, a restaurant that joins iFood, on average, increases revenue by 50% in six months.”

iFood in numbers

50 thousand restaurants connected to the platform

390 thousand orders daily

109% - an increase in the number of orders per year

1.3 thousand employees

120 thousand couriers delivered orders in a year

500 cities— iFood geography

$117 million— Estimated revenue in 2018

Sources: company data, Naspers.com

Eating everyone on the way

iFood received its first major investment in 2015. Then Movile, together with Just-Eat, invested about $ 80 million in the project. Thanks to this, the company began to expand into other Latin American markets - Argentina, Mexico and Colombia.

According to Naspers, iFood's revenue in 2015 was 61 million Brazilian reais (about $16 million at the then rate), the loss due to active expansion was 24 million reais (about $6 million). The following year, financial indicators almost tripled - to 171 million reais (about $44 million) in revenue and 15 million reais (about $4 million) in profit, and in 2017 they reached $53 million and $5 million, respectively. The company managed to grow largely thanks to the strategy of mergers and acquisitions of local players.

In Brazil, iFood acquired local services Devorando, Apetitar, Hellofood Brazil (owned by Just-Eat) and others, and in Mexico - 49% of the SinDelantal service (owned by Just-Eat, and before that - Hellofood Mexico). The acquisitions also included US-based order tracking and delivery time optimization platform SpoonRocket. “In three years, we have carried out a total of 25 mergers and acquisitions of local competitors,” states Moises.

This strategy has allowed iFood to reach around 500 cities in Latin America. In all the service uses for the delivery of orders as individual entrepreneurs working through a special application, and courier services. For example, the Brazilian Rappido, which delivers orders on bicycles (its main investor is the same Movile).

However, the strategy did not always work. For example, in Argentina, Moises had to sell the business to PedidosYa, the local division of one of the largest international players, Delivery Hero. “In Argentina, there are still many problems with the infrastructure, the payments ecosystem and the penetration of technology in general. iFood did not grow as fast as we wanted there, so we decided to focus on markets where the potential is higher, ”explains the entrepreneur.

In 2016, there was another unsuccessful attempt to exit - now to Russia. Then Moises wanted to acquire the Russian food delivery service ZakaZaka. “With the help of ZakaZaka, iFood hoped to overtake Delivery Club by Russian market Andrey Tsytsenko says CEO Delivery Club, co-founder of ZakaZaka. “But we sold this service to Mail.Ru Group, and it didn’t work out.”


Carlos Moises (Photo: personal archive)

Today, Moises does not think about entering the markets of other continents. “There is high competition and big players like Delivery Hero, Just-Eat or Delivery Club. In Latin America, there are more opportunities for us: the market is just emerging here, and it is so large that there is enough space not only for food delivery services, but also for restaurants with their own courier services,” he notes.

Low start phenomenon

The Latin American market is a good place for companies whose work is built through mobile applications. A huge population and the underdevelopment of digital and consumer technologies create the prerequisites for a quick breakthrough in half-empty niches. In 2017, the Chinese Didi Chuxing invested $100 million in the Brazilian taxi aggregator 99, and in the spring of this year it completely bought the company for another $900 million. and Andreessen Horowitz. Former Alibaba CEO Jack Ma traveled to Argentina in 2017 to explore the company's entry into Latin America. The visit raised concerns among the management of the largest online marketplace in the region, MercadoLibre, which is used by more than 174 million people in 15 countries.

Intelligence and food

Brazil remains a key market for iFood, but Moises expects to strengthen his position in other Latin American countries with the exception of Argentina. Just for this, in November 2018, he attracted from the South African media group Naspers (has a stake in Delivery Hero, Swiggi and Mr Delivery), Movile and European fund Innova Capital $500 million

Technology development will help iFood to gain a foothold outside of Brazil, the entrepreneur believes. Today, the company already determines customer preferences through artificial intelligence. "IN Lately we invest a lot in the development of AI, says Moises. “Now our system is able to predict what customers want to order based on their previous orders. For example, if you are a vegetarian, the app will not show you meat dishes.”

Artificial intelligence helps iFood with determining the best delivery route. These orders are sent to restaurants in the order in which they can be delivered the fastest. “If we have ten orders for a particular restaurant, we don't ship them all at once. Sometimes it happens that the courier will deliver orders faster if he starts with the one that was accepted last. That’s why the system calculates the ideal logistics solution so that couriers can serve more dishes and restaurants can get more money.” Further development of these technologies is a top priority, says the iFood CEO.

The company plans to invest in staff development. As part of a special "International cuisine" program, iFood sends 20-30 employees from one national unit to another every three months. So, recently employees of the Brazilian office went to the Mexican division of iFood. “For employees, this is development, and for the company, it is an opportunity to improve sales, hone work models in different countries, apply experience in new markets and optimize all processes, says Moises. - Before leaving, the employee indicates what problem he would like to solve or what goal he sets for himself in another market. For him, this is something like a three-month challenge. He can stay in this country longer if he wants to realize the new plans that have appeared during the trip.”

View from the outside

"The average user in the regions can rarely afford shipping"

Andrey Lukashevich, director of Mail.Ru Foodtech Ventures

“Promoting the food delivery service through a series of TV comedy commercials has been very effective. This provided the business with growth in a couple of years from a million orders per month to several million. However, in Russia, this strategy will be less successful: a TV campaign only works if it is carried out on a national scale, and our delivery restaurants are still underdeveloped outside of Moscow, St. Petersburg and other million-plus cities. It also plays a role that the expectations of restaurants on the average bill, which they indicate with the help of the minimum order amount, and the actual purchasing power of the general population do not correspond to each other. The average user in the regions can rarely afford shipping. However, humor and celebrity involvement in the promotion has always shown itself. in a good way increase awareness of the service or product.

“The market was heavily undervalued”

Andrey Tsytsenko, CEO of Delivery Club

“Companies like iFood, which are already handling tens of millions of orders a month, are just getting started. Previously, everyone thought that food delivery services would not be able to reach a high frequency of orders. Now, when global players are showing such results, we understand that the market was greatly underestimated. It is much larger than was thought a few years ago, and everyone is happy about it. But the next rise in interest greatly increases competition.

The global food delivery market is currently dominated by two players, Delivery Hero and Just-Eat. Local services, such as iFood, are also on the rise, taking control of regional markets. I think in the future there will be a monopoly, conditional UberEats - a global company that will exist in many markets with the same product.

DoorDash has raised $250 million from hedge fund Coatue Management and venture capital fund DST Global. Investment will go to development: it has become the fastest growing in the US.

The capitalization of the company, including borrowed funds, reached $4 billion. According to the American research firm Edison Trends, 2018 is the breakthrough year for DoorDash: it shows record growth. financial indicators- 250% (!). Since January, the restaurant food delivery service has almost doubled its geography, to 1,000 cities in the US and Canada. During this time, 100 became partners the best restaurants(absolute growth record in the industry). DoorDash recently announced partnerships with restaurant chains Chipotle, IHOP, Red Lobster, White Castle and Cheesecake Factory.

“DoorDash is gaining market share faster than anyone else in the industry,” said CEO and co-founder Tony Xu.

Management is actively implementing DoorDash Drive, a platform that allows retailers to offer transportation to customers who place orders directly at the restaurant. Within its framework, the company became in the United States the national operator for the delivery of products from the world's largest trading network Walmart. Over the past 4 months, its service coverage has expanded to almost 300 stores in 20 states. In August, DoorDash launched the DashPass subscription, which gives you $10 access to a whole month of delivery service. At the same time, the company introduced a new "Pickup" feature. Through a mobile application or on the website, users place an order for delivery to their car.

“Over the past few years, the last mile logistics space has exploded with innovation and competition. DoorDash's rapid growth took them from If to When, said Thomas Laffon, Senior Managing Director of Coatue Management.

DoorDash has passed the path to success in 5 years. A San Francisco-based startup has turned an ordinary mobile app into a five-star service with a huge selection of restaurants and food. Tony Xu's company brilliantly embodied his business idea, which became the motto - to satisfy people's craving for delicious food.

DoorDash founders Andy Fang, Tony Xu and Stanley Tang

No wonder the number of DoorDash investors includes such reputable venture funds as Khosla Ventures, Sequoia Capital, Vision Fund (SoftBank), Charles River Ventures, GIC, Kleiner Perkins, Wellcome Trust and YCombinator.

Formerly (Kentucky Fried Chicken) franchised by AmRest Holdings SE (Wroclaw, Poland). Companies have been digitizing establishments for 3 years now.

Sources: prnewswire.com, trends.edison.tech, doordash.com. Prepared by Stanislav Klopot

Our former compatriot based in Chicago works for Uber Eats. The guy told what it is and how much a courier can earn on food delivery.

I work through mobile applications, I have repeatedly shown you what it is. Basically, of course, this is Uber Eats - an application through which any user can order food delivery from a restaurant or the delivery of any small package, for example, give a jacket to a friend that he forgot. Yes, it is easier for Americans to pay for delivery than to go somewhere.

On the screen of the phone, the money earned in a week in Uber Eats: $ 1,296.2 (74,000 rubles). The system works very simply: you register and start, in fact, to work. You work when it's convenient for you, as much as you want, you arrange lunch for yourself when it's convenient. The application has a list of orders indicating the start and end points, you choose the order that is convenient for you and start fulfilling it. You can walk, ride a bike, scooter, etc. I took a used bike for $30 (1,700 rubles) and have absolutely no complaints.

As you can see, on Monday I earned the most, on Tuesday I worked quite a bit, on Wednesday I took a day off. The next week continued more steadily.

Trip Earnings - earnings from trips at the usual rate, Tip - tips (well, where without them in the States?), Sometimes they give in cash. The most interesting item is Promotions. This is earnings due to increasing delivery cost factors (for example, when it rains like a bucket or sleet with a strong wind) and promotions ala "complete 5 more orders and we will send $ 20".

To be honest, on average working week it turns out 100 dollars less than on the screen for the period February 19-26.

materials are taken from open sources