Business

iFood, Uber Eats, Rappi to reduce partner restaurants fees

Rappi's measures start in April, Uber from the 8th, and iFood extended the reduced rates, announced in March, for another 15 days

Photo: Roberto Parizotti/FotosPublicas
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  • Uber’s measures start on April 8;
  • iFood reduced the rate of restaurants via iFood delivery from 23% to 18%;
  • Rappi established a maximum commission of 18% for restaurants with delivery via its app until June 30th.

As the pandemic in Brazil reaches its peak, and restaurants are struggling with lockdown policies, the main delivery apps in the country (iFood, Uber Eats, and Rappi) announced measures aimed at reducing and even exempting the fees of the partner restaurants.

iFood will extend for 15 days the support measures of March. The company informed that it will maintain the reduction of fees, automatically, for partner establishments. The reduction is from 23% to 18% for those who operate via iFood delivery (its platform logistics), and from 12% to 11% for restaurants that operate in the marketplace (that use their own couriers).

Also, the transfer of receivables will continue up to seven days after the sale, at no extra charge, until June 30, for all restaurants active for more than 30 days on the platform. The company will continue to offer easy credit lines, through Banco do Restaurante iFood, with special rates and conditions, via the iFood Digital Account.

READ ALSO: Colombian startup unicorn Rappi: why the company wants to be the first Latin American super app

The payment term varies between 6 and 12 months, with a grace period of up to 2 months, and the interest rate starts at 1.99% per month. The goal is to offer more than BRL 500 million to restaurants throughout the year.

iFood also recently announced a pilot program of partnerships in support of restaurants in the cities of Rio de Janeiro and Campinas in which it will offer discounts and facilities on the monthly expenses of establishments registered in the app.

The program will count on companies that will provide a cost reduction for the owners of the establishments, such as Supergasbras, Contabilizei, BMG Seguros, Pranabank, NeoGourmet, Worc, and Vivo.

The benefits negotiated with the partner companies are discounts of 12% to 80%, extended payment term, reduction of contractual terms from 6 months to 12 months, and 24/7 service and support.

The expectation is that from these partnerships, restaurants can save up to BRL 4,000 per month with gas, internet, energy, accounting, among other essential services for the operation of restaurants.

Uber Eats package starts on April 8th. New restaurants with their own network of delivery people who register on the platform in April will have 30 days to test the app without paying any fee.

As for restaurants that join the platform opting to use delivery partners of Uber Eats, the fee per order will be reduced and fixed at 18%, also for one month.

READ ALSO: iFood and Domicilios.com merge operations in Colombia after regulator’s approval

The rate reductions also include restaurants that already use the platform. Businesses that operate with their own delivery network will be able to pay 5% fees for one month, a reduction of up to 70% in the amount that can be charged in these cases.

On the other hand, restaurants that use Uber Eats delivery partners can have up to 40% reduction and choose to pay only an 18% fee during this period. Eligible restaurants will have until April 7 to confirm that they want to activate the discount.

Uber Eats also pledged to invest about BRL 70 million in marketing and promotions in the platform to generate demand for registered restaurants in the coming months.

According to Rafael Pereira, Head of Restaurant Operations at Uber Eats, these new measures are besides to the aid actions that the firm announced in February and are being extended for another month. Among these actions, there is the daily and free advance payment for restaurants.

“This is the best solution for advancing receivables in the market. We know how important cash flow is and we believe that, by passing on these amounts daily, we help entrepreneurs to make the best financial decisions for their business.”

READ ALSO: iFood pledges to be carbon neutral and plastic-free on delivery by 2025

In addition to the free daily transfer, orders placed through the online platform made available free of charge by Uber Eats, in which restaurants can create and configure their own website, will continue to be exempt from service charges, as well as orders in the “To Pick Up” mode in cities where it is allowed.

Users will continue to have the option to donate BRL 2 to their favorite restaurants directly through the app, as a way to support employees.

“We listened to our partners and we are doing our part to help the restaurant industry in this very delicate moment”, comments the executive. Uber Eats recorded an 80% growth in the number of registered restaurants last year.

READ ALSO: Uber Eats, Rappi, and Didi Food in Mexico cut fees temporarily as restaurants struggle

Rappi, on the other hand, will temporarily reduce commissions on the platform from April 1st. The maximum commission will be 18% in the full-service model, with Rappi’s logistics, until June 30th. As for the restaurants that make their deliveries and use Rappi as a marketplace, the maximum commission will be 5% by the end of the year, according to Veja.

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