iFood Plans to Triple its Size in the Incentives Market in the Coming Years with Givex Gift Cards

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Apr 17, 2024, 09:00 ET

The initiatives include forming new partnerships and expanding participation on special occasions

TORONTO, April 17, 2024 /PRNewswire/ - Givex Corp . ("Givex") (TSX: GIVX) (OTCQX: GIVXF) is pleased to share that iFood, a leader in online food delivery throughout Latin America, has launched an ambitious plan to significantly grow its Givex-powered gift card sales, aiming to triple them in the years ahead.

While gift cards are a real success among consumers when choosing gifts in foreign markets, such as the USA, Europe, and Australia, this trend has not caught on in Brazil. That is, it has not caught on yet, since iFood plans to triple its size in this sector within the coming years. Currently, 900,000 cards are sold each month and, in the short-term, the target is to end 2024 with growth of 15% to 20% compared to the previous year. Givex is the technology partner behind the iFood gift card solution.

The previously slow adoption of gift cards has cultural reasons. For Brazilians, foregoing a physical present for a gift card feels too impersonal. On the other hand, the situation has created new opportunities and companies have started to invest in the acquisition of cards for various use cases, from connecting with customers to rewarding employees. The demand came from organizations interested in adding value to their business and/or strengthening the connection with people or with the brand.

Today, 37,000 companies use the iFood solution and more than 2 million people have benefitted from these partnerships.

Pernod Ricard, a company with a portfolio of over 240 beverage brands, such as Absolut, Ballantine's, and Chivas Regal, used the iFood gift card in Brazil for its promotional campaign and launched an incentive program that rewarded R$30 to any customer who purchased one of the eligible labels included in the offer. With the card, which was sent by e-mail, the consumer could then buy whatever they want using the app.

TLC Latam, the firm responsible for the Pernod marketing action, called "Open bar at home," did not comment on the numbers, but stated that the results were solid. According to João de Galvão Teles, Partnerships and Content Director at TLC Worldwide, the company aims to offer high-value experiences to their clients' end consumers. "The collaboration with iFood represents a significant milestone," he highlights, which "reflects the synergy of constantly elevating the standard of excellence."

"With the iFood gift card, we've evolved our campaigns, improved our work, and leveraged our clients' sales," says Kamila Silva, Head of Purchasing at Banco Daycoval, another iFood program partner.

Why the gift card?

Even faced with the challenges of opening this new market, the gift card is one of iFood's main investments for growth. This gift serves as a sales opportunity that would otherwise not occur – one that generates new transactions.

For Frederico Nicolay, senior business manager of the iFood restaurant platform, the card is synonymous with practicality for the purchaser and freedom for the recipient.

Along with restaurants, supermarkets, and drinks, the categories of pet shops, pharmacies, and shopping are already available on the iFood app. The shopping category alone boasts a wide range of segments including presents, flowers, perfume, electronics, toys, fashion, books and stationery, as well as adult items. To date, there are 350,000 partners united on the platform, 3 million orders made across all categories, and 1.3 million app downloads.

The number of establishments and products on offer on the iFood app, with quick delivery included, not only makes for a better experience for thousands of the app's users – it also generates value when one of the company's cards is chosen as a gift, reward, or bonus.

"There is nothing impersonal about it," ensures Nicolay. As a strategy, the company envisions many new opportunities in physical retail, such as bundling the purchase of a gift card with a bottle of wine to celebrate special occasions. "Our challenge is to make the gift card more giftable," adds Nicolay.

Beyond these strategies, iFood is also investing in partnerships with other brands, such as Nintendo + iFood, Cacau Show + iFood, and Lacta + iFood gift cards, which have been giftable on the app and in digital stores since March 2023.

The results speak for themselves. Since the card was launched in November 2019, there has been growth of 400%. When comparing 2023 vs. 2022, growth was 25%.

"We are growing and finding opportunities," concludes Nicolay.

About Givex (TSX: GIVX) (OTCQX: GIVXF)

The world is changing. Givex is ready. Since 1999, Givex has provided technology solutions that unleash the full potential of engagement, creating and cultivating powerful connections that unite brands and customers. With a global footprint of 132,000+ active locations across more than 100 countries, Givex unleashes strategic insights, empowering brands through reliable technology and exceptional support. Givex's integrated end-to-end management solution provides Gift Cards, GivexPOS, Loyalty Programs and more, creating growth opportunities for businesses of all sizes and industries. Learn more about how to streamline workflows, tackle complex challenges and transform data into actionable insights at www.givex.com.

SOURCE Givex Corporation