Agreement with CADE on exclusivity practice with restaurants

On February 8, 2023, iFood and CADE (Administrative Council for Economic Defense) signed an agreement which establishes criteria and limits to the practice of exclusivity in contracts signed between iFood and partner restaurants.

Valuing transparency and attention to clause 4.11 of the Agreement, we present below the main points defined in the agreement. 

  • Up to 25% of sales volume (GMV) on iFood may be linked to exclusive restaurants; In the 49 municipalities with more than 500,000 inhabitants, only 8% of the restaurants that work with the platform will be able to sign an exclusivity contract. iFood will have 6 months to adapt to these limits.
  • New exclusivity contracts can be signed by iFood, but limited to a maximum period of 2 years. After this period, the restaurant in question must undergo a “quarantine” and remain without exclusivity with iFood for a minimum period of 1 year. 
  • As a general rule, exclusivity contracts that are currently in force and that have already accumulated 2 years of exclusivity fall into “quarantine” immediately after their current expiration date.
  • There are exceptions to the quarantine - depending on the investments made by iFood in the exclusive restaurant and the growth generated for it -, which will be handled individually by the iFood commercial team together with the impacted restaurants. 
  • iFood will not be able to sign exclusive contracts with brands that, at the time of signing or renewing the contract, have 30 or more establishments. Contracts currently in force with brands that fall under this prohibition must be terminated by 09/30/2023.
  •  iFood will not be able to adopt other measures that induce non-exclusive restaurants to have exclusivity with the platform, such as requiring them to refrain from carrying out promotions on other platforms, or making discounts conditional on the guarantee that the majority of their business volume will be on iFood.


Click here to download the agreement signed between iFood and Cade.

 

We are working to fully comply with the agreement. We also highlight that iFood continues to prioritize offering the best delivery app – with cutting-edge service and technology – for restaurants, consumers and delivery people. 

read here the exclusive interview with Arnaldo Bertolaccini, vice president of restaurants at iFood, about how the agreement impacts the company's operations.