iFood remains delivery app with greatest brand strength in Brazil -study

RIO DE JANEIRO, BRAZIL – The pandemic has challenged the effectiveness of delivery services. The platforms that best serve customers and are evolving in terms of value proposition and product offerings are performing the best, according to CVA Solutions’ Delivery Meals and Products study.

Overall, Brazilians are satisfied with existing delivery services, giving 2021 a score of 8.51 – up from 8.09 the previous year, due to a decrease in reported problems and an increase in spending between 10% and 22% past 12 months.

The survey was conducted between June and July 2021. It surveyed 3,200 people from 13 of Brazil’s main cities (metropolitan regions) and some smaller cities in the country’s interior.

“Digital transformation is here to stay, and the survey shows what really matters to consumers,” said Sandro Cimatti, partner director of CVA Solutions.

iFood continues to be the most mentioned name for both meal delivery and products and has the greatest brand strength. It is used most often by 55.2% of people for meals and by 30.5% for products.

For meals, AiqFome (acquired by Luiza magazine), UberEats, 99Food, Rappi, and Delivery Much stand out. For products, Magalu, Mercado Livre, Amazon, Lojas Americanas, Uber, Rappi and Zé Delivery de Bebidas are the most used and best rated.

“This is the first time AiqFome has appeared in this ranking. With this, we recognize more competitors and the big companies’ strategy to become super apps. iFood is known for food delivery, but it still has room for growth, for example, in supermarket and pharmacy items. Magazine Luiza and Mercado Livre deliver everything and compete to do it faster and faster,” Cimatti says.

According to him, brands like Delivery Much are recognized for local services. In this case, the strategy to grow and do well moving forward is to be careful when entering other markets. “Some companies are in a hurry to expand and can’t maintain the original quality,” he says.

MEALS

Delivery Much recorded the best-Perceived Value (cost-benefit ratio perceived by the customer) with an index of 1.02. 99Food and One Pizza come in order.

In terms of Brand Strength, iFood leads with 64%, although it has seen a decline compared to 2020 due to new companies entering the market. It is used by 81.2% of respondents and is the most used by 55.2%.

Coming in order are Uber Eats, Quero Delivery, Delivery Much, and AiqFome. Delivery by restaurants themselves is also used by 25.2% of people and showed a growth of 5% compared to 2020.

Delivery problems decreased compared to 2020. Previously, 60% reported a problem, now it is 58%. On the other hand, 41.9% reported no problems. The most frequently reported problems were delays (29.2%), followed by failures with the discount coupon (16%), and difficulties talking to the delivery person (9.5%).

Of the consumers who experienced problems, 46.9% complained, and in 80.1% of the cases, the company resolved the problems satisfactorily, respondents said.

SPENDING

In 2021, there was a decrease in the frequency of using delivery meals. The average was 5.82 times per month, down from 6.13 in 2020, much of which was due to reopening some retail and restaurant areas.

Spending increased both in the face value of orders and every month. The average spend per order increased from R$40.05 to R$44.60. Average monthly spending increased by 9.6%: from R$225.06 to R$246.71.

Delivery Meals subscriptions increased their awareness and usage. Awareness increased from 13.7% to 25.4%, as consumers do not pay delivery tax in this way.

Given the success of orders for so-called “lunch boxes” – home-cooked, simpler, and less expensive meals – awareness of these offerings increased from 55.8% to 60.5%.

PRODUCTS

Luiza magazine recorded the best-Perceived Value with an index of 1.03, with Amazon, Mercado Livre, Casas Bahia, Zé Delivery de Bebidas, and Uber following in order.

Once again, iFood leads in Brand Strength with 23.9%. The application is used by 48.9%, with 30.5% using it the most. Mercado Livre, Amazon, Lojas Americanas and Magalu are in the order.

The number of records of problems decreased. Now 45.6% reported a problem, down from 52.5% in 2020, but the problems remain the same: late delivery, no discount or coupon, and difficulty contacting the delivery person. But 54.4% of people reported no problems.

Of those who did have a problem, 50.6% filed a complaint, and 85.2% received a satisfactory resolution.

The frequency of use of product delivery had a small decrease due to the reopening of the trade. In 2020, people ordered an average of 7.5 times in 60 days. In 2021, the number dropped to 6.3 times.

The cost increased per order and month. The average per order increased from R$88 to R$132. In the month, the average increased from R$168 to R$20 6, a 22.6% increase.

The most requested facilities for deliveries are pharmacies, supermarkets, and beverage stores.

Knowledge of monthly subscriptions increased from 17% to 29.4%, influencing an increase in this purchase modality without paying a delivery fee.

“Traditional electrical sellers now want to participate in delivery as it is an up-and-coming market. They want to be close and more often in contact with their customers and deliver everything they need, both products and meals. In this way, they can change and increase the frequency of customer purchases,” adds Cimatti.

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