Ride‑hailing app 99 to invest BRL 1B in Brazil

Vehicle-for-hire company 99 has unveiled investments adding up to BRL 1 billion in Brazil to expand its service platform. The announcement was made on Wednesday (Apr. 16) during a meeting between Brazil’s vice-President and Minister of Industry, Trade, and Services Geraldo Alckmin and Stephen Zhu, the global director of Didi’s International Business Group, 99’s parent company in China.

The expansion should also include 99Food, a food delivery service. Thus, 99 is bringing the new service on top of the other services it already offers—such as individual transportation, parcel deliveries, and personal finance management (99pay).

“This investment reflects our long-term commitment to Brazil,” Stephen Zhu said. 

In Alckmin’s view, “the announcement of 99’s investments in Brazil shows that President Lula’s commitment to a stable economic environment is bringing positive results for the country at a time of uncertainty in the world.”

99Food is expected to start operating for consumers, restaurants, and couriers by the middle of this year. The company operates in more than 3,300 cities worldwide, with 1.5 million accredited drivers, motorcyclists, and couriers. Last year, the company grew by 125 percent.

Motorcycle taxi

The 99 platform, as well as Uber, are fighting a legal battle with São Paulo city to provide motorcycle taxi services in the city. Mayor Ricardo Nunes is against the initiative on safety grounds. He went as far as to issue a decree suspending the service.

The Brazilian Mobility and Technology Association (Amobitec), which represents these platforms, argues that the apps are not responsible for any increase in traffic accidents involving motorcycles.

In the most recent installment of the legal battle, finance court in São Paulo state decided to invalidate the municipal decree. However, the service is still suspended due to an injunction issued in January this year by the São Paulo Court of Justice.