CAO Cases

Arne Hoel, The World Bank

Latin America & the Caribbean

Brazil / Valor-01/Sao Paulo

Complainant
Residents neighboring an iFood/Tembici support point in São Paulo
Date Filed
March 12, 2021
Concerns
Health and safety, PS.
Case Status
Open - Ombudsman
 

Synopsis

Project Overview 

IFC has an active equity investment of up to USD 25 million in Valor Venture Fund III and up to USD 10 million in Valor Opportunity Fund. Valor Venture and Valor Opportunity invest in early-stage technology companies and international technology companies seeking to expand into Latin America, and specifically into Brazil. Valor has an active investment in Tembici, the largest bike-sharing company in Latin America. In 2020, Tembici partnered with iFood—a mobile platform where customers can find and order food from restaurants—to implement the project “iFood Pedal”. According to information on Tembici’s website, the project includes flexible plans for iFood delivery partners for the use of Tembici’s bikes and for the creation of support points—where delivery partners can check-in and return e-bikes, eat, and charge their phones, among other services.

 

Complaint 

An individual submitted the complaint to the CAO on behalf of himself and residents of the building in which he resides in São Paulo, Brazil. The complaint raises concerns related to the establishment of a Tembici/iFood support point in October 2020, close to the building, which resulted in crowding the sidewalk to the point where residents had to walk on the road, putting their physical integrity at risk, according to the complainants. These concerns were exacerbated by the pandemic because delivery partners using the support point allegedly did not comply with restrictions and regulations to prevent COVID-19 infections. Furthermore, the complaint alleges that delivery partners rode their bicycles carelessly, generating additional risks to residents’ safety.

 

CAO Action

CAO found the complaint eligible in April 2021 and conducted an assessment of the complaint. During the assessment, the Complainants and the Company agreed to engage in a voluntary dialogue process to try and resolve the dispute. CAO’s assessment report is available in English and Portuguese under "View Documents" below.

Status
A dispute resolution process is underway.


Status as of August 20, 2021

 

Project information

Institution
IFC
Project Name & Number
Valor 01
Department
Global Manufacturing & Services
Company
Valor Venture Partners Management LLC
Sector
Venture Capital Fund
Region
Latin America & the Caribbean
Country
Brazil
Environmental Category
FI-3
Commitment
$35 million in equity investment.

Case Tracker

Ombudsman

  • Eligible: Completed
  • Assessment Period: Completed
  • Facilitating Settlement: In Process

Compliance