Business

Brazilian retailer Magazine Luiza acquires delivery startup AiQFome

Magazine Luiza is expanding the range of services to increase the recurrence of users on its marketplace

REUTERS/Paulo Whitaker
Ler em português
  • AiQFome operates in 350 Brazilian cities with a platform of 2 million customers and 17,000 restaurants;
  • The app mainly serves smaller cities, with a population of 15,000 to 300,000 inhabitants. The new owner plans expanding it to big cities.

Brazilian retailer Magazine Luiza announced the acquisition of the food delivery startup AiQFome, expanding the range of its services to increase the recurrence of users on its marketplace.

Headquartered in Maringá, in the southern state of Paraná, AiQFome operates in 350 cities with a platform of 2 million customers and 17,000 restaurants, handling around BRL 700 million per year.

READ ALSO: Brazilian iFood takes the first step to deploy drones for meal delivery

The value of the transaction has not been revealed. According to Magazine Luiza’s financial and investor relations director, Roberto Bellissimo, the value is not materially relevant.

In addition to serving mainly smaller cities, with a population of 15,000 to 300,000 inhabitants each, AiQFome has a different model from the most popular food delivery apps, such as iFood, Rappi and Uber Eats, since the app is used only as a middleman to ordering and paying for meals, while delivery itself stays in charge of restaurants.

READ ALSO: Brazilian mall operators partner up with Google to offer new meal delivery service

AiQFome will be integrated into the Magalu superapp, which in recent years has started to include a digital wallet and e-commerces by Netshoes, Zattini and Época Cosméticos, among others.

According to Bellissimo, Magazine Luiza will soon begin testing AiQFome including delivery services, while expanding investments in the business to expand to larger cities.

“In addition to expanding the offer of services in our marketplace, the objective with the purchase is for AiQFome to increase the recurrence of use of our superapp”, said the executive.