Didi's Food Delivery Unit Spends $1 Billion on Merchant Exclusivity Deals in Brazil to Block Meituan's Keeta

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According to Brazilian media reports on August 14, Didi's Brazilian food delivery business 99Food has been signing exclusive "choose-one-of-two" agreements with merchants through substantial cash advance incentives, explicitly prohibiting merchants from cooperating with MEITUAN-W's Keeta in any form. In response, Keeta, MEITUAN-W's international food delivery brand, has filed a lawsuit with local courts. Keeta claims these contract terms are specifically designed to prevent Keeta from entering the Brazilian market, thereby restricting competition and reducing innovation.

This marks the second time 99Food has been sued for unfair competition, following a previous case where it maliciously purchased "Keeta" advertising keywords at high prices, which resulted in an injunction from a São Paulo court. On August 11, the court ordered 99Food to cease confusing "Keeta" keyword search results on Google and similar platforms within three days, with penalties of 20,000 reals per day for non-compliance.

According to reports, Didi's 99Food has contacted over 100 restaurant chains locally, offering at least 900 million reals (over 1 billion yuan) in advance payments in exchange for these exclusive agreements. However, the exclusivity clauses specifically target MEITUAN-W's Keeta while not restricting merchant cooperation with local food delivery giant iFood.

Previously, Didi's 99Food responded to Brazilian media, acknowledging that it had indeed signed similar exclusive agreements with some restaurants. According to a Brazilian media personality's revelation in June, 99Food offered one merchant 6 million reals (approximately 8 million yuan) in cash for a "semi-exclusive" agreement targeting Keeta while not restricting iFood partnerships.

This move by 99Food has been interpreted as "securing the second position first, then considering how to compete for first place." iFood currently dominates Brazil's food delivery market with an 80% market share. Both MEITUAN-W and Didi are new entrants - Didi restarted its Brazilian food delivery business 99Food in June this year, while MEITUAN-W's Keeta announced in May that it would enter Brazil within months and is currently in the business preparation stage.

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