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After investing R$ 180 million, partners close Delivery Center

The unexpected announcement reveals tough competition in online sales logistics
The unexpected announcement reveals tough competition in online sales logistics
11/23/2021
BR Malls and Multiplan, shareholders of Delivery Center, announced the closing of the delivery company, just two years after several key partners joined the business and more than R$ 180 million invested in the company since 2016, according to Valor. The decision was taken after the operation registered results that did not signal a "turn" in the numbers and adhesion of shopkeepers below expectations. Unexpectedly, the announcement warned the market about the tough competition in online sales logistics, with competitors like iFood and Rappi, and the high capital consumption of these businesses in their formation phase. 

One of the leading new companies in the "last mile" area (final delivery stage to the customer), Delivery Center, has shareholders considered a reference in retail and services. Still, they are from locations outside the distribution and technology sector, at a time when the big platforms compete very actively with each other.

Multiplan, BR Malls, Syn (former Cyrella Commercial Properties, CCP), José Galló's family office, Bloomin' Brands (owner of Outback), and Grupo Trigo (Spoleto and China in Box) were shareholders of the company, which had been receiving contributions to expansion for years. Valor calculated that at least R$180 million were injected into the business since its creation in 2016. Multiplan has 26.89% of delivery and reported a net loss (proportional) of R$62 million in the balance sheet business until September 30, 2021, in addition to negative equity of R$13 million - a year earlier, the loss was lower, than R$ 39 million. 

BR Malls recorded a loss with the company of nearly R$72 million until September, versus a loss of R$33.5 million in the entire year of 2020, according to the explanatory note of the balance sheets. After yesterday's announcement, Multiplan shares closed down 3.07%, and BR Malls, 2.94% - the Ibovespa dropped less, 0.89%.

Read the full story (in Portuguese).

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