Uber and iFood team up for in-app services in Brazil

SAN FRANCISCO & SÃO PAULO - In a strategic move to streamline services for consumers, Uber Technologies, Inc. (NYSE: UBER) and Brazilian food delivery giant iFood have announced a partnership that integrates ride-hailing and delivery services within each company’s app. This collaboration is set to simplify the daily routines of millions in Brazil by allowing iFood users to book Uber rides and enabling Uber users to access iFood’s extensive delivery offerings without the need to switch applications.

The initiative aims to enhance user experience by merging transportation with food, grocery, pharmacy, and convenience delivery services, reflecting both companies’ efforts to innovate access to everyday services. This strategic move comes as Uber continues to demonstrate robust financial performance, with trailing twelve-month revenue reaching $45.38 billion and maintaining a healthy gross profit margin of 33.6%. Dara Khosrowshahi, CEO of Uber, highlighted the significance of the partnership, noting that currently only about half of iFood and Uber customers in Brazil use both platforms. Diego Barreto, CEO of iFood, echoed the sentiment, emphasizing the potential for increased orders for local businesses and greater convenience for consumers.

The integration process will begin in select Brazilian cities in the second half of 2025, with plans for a subsequent nationwide rollout. Despite the new partnership, there will be no immediate changes to existing membership programs, Uber One or ’Clube iFood’, though both companies are open to exploring joint membership opportunities in the future.

This collaboration is expected to not only simplify consumer access to various services but also to drive more income for couriers and drivers, and boost orders for restaurants, grocery stores, pharmacies, and convenience retailers. The companies assured that Uber’s white-label delivery service for businesses (Uber Direct) and parcel delivery (Uber Flash), as well as iFood’s logistics services and ’Sob Demanda’ delivery, will remain unchanged.

Uber, known for revolutionizing urban mobility, and iFood, a dominant force in online delivery in Latin America, are leveraging their respective technologies to offer a unified, efficient solution for everyday needs. The partnership, based on a press release statement, represents a significant step in both companies’ missions to provide seamless access to services with a single tap. With Uber’s stock showing a remarkable 52% return year-to-date and earning a "GREAT" financial health score from InvestingPro, investors seeking deeper insights can access comprehensive analysis and 16 additional ProTips through the platform’s detailed research reports.

In other recent news, Uber Technologies has announced several developments aimed at expanding its services and enhancing its financial standing. The company revealed plans to offer $1 billion in exchangeable senior notes due in 2028, with the proceeds intended for general corporate purposes, potentially including strategic investments. DA Davidson analyst Tom White has raised Uber’s stock price target from $80 to $98, citing a solid performance in the first quarter of 2025, despite mixed earnings results. TD Cowen also increased its price target for Uber to $96, maintaining a Buy rating based on the company’s strong market position and favorable second-quarter guidance.

Meanwhile, Uber introduced new services such as shared fixed-route rides and expanded membership passes to provide more affordable travel options. These initiatives are part of the company’s strategy to attract cost-conscious customers amid slowing revenue growth. Additionally, Uber is expanding its partnerships with Volkswagen and Waymo to deploy robotaxis in various cities. Benchmark analyst Daniel L. Kurnos maintained a Hold rating on Uber, acknowledging the company’s strategic focus on membership and cross-pollination, which may provide a competitive edge in customer acquisition.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.