Azure Container Apps provides a serverless platform for building and deploying containerized microservices applications that automatically scale based on events, with the ability to use any programming language or framework. It integrates with open source tools like KEDA for event-driven autoscaling and Dapr for service invocation and state management to simplify building distributed microservices architectures in the cloud. The document demonstrates how to build a serverless retail application using Azure Container Apps, Cosmos DB, and Service Bus with .NET microservices that scale independently based on events.