Mexicans Increase Spending on Rappi and Uber Eats By 40 PercentBy Andrea Villar | Wed, 06/03/2020 - 13:07
Since the COVID-19 contingency began in Mexico, home delivery apps have seen an increase in demand due to stay-in-home orders. In March, restaurant consumption through Rappi rose 10.98 percent, while Uber Eats saw growth of 6.24 percent, revealed a Fintonic report.
In April, Rappi increased its restaurant orders by 44.34 percent, while Uber Eats surged 24.06 percent and DiDi Food saw a rise in demand for deliveries to 15.12 percent. Meanwhile, in May, consumption in restaurants through Rappi increased 38.58 percent, while Uber Eats rose 14.80 percent, and DiDi Food increased 4.46 percent.
"In tune with health measures and in the presence of the novel coronavirus, Mexicans drastically reduced their consumption in restaurants while increasing the use of home delivery apps. However, as the months go by, consumption in restaurants registered a slight recovery,” explains the study “Consumption in Food Delivery Apps During Covid-19 in Mexico.”
According to data from the consulting firm Kantar, there was a 26 percent increase in online shopping in Latin America during the first weeks of the COVID-19 contingency. “We are already seeing how people's habits are changing due to COVID-19. In Chile, we carried out a study where we found that people reduced cash withdrawals by up to 52 percent, while the use of credit and digital cards increased by more than 40 percent. People are being forced to opt for digital tools to avoid the use of cash,” said Fintonic Country Manager José Gabriel Carrasco in an interview with Mexico Business News.
A Crisis Never Seen Before
Stay-at-home orders throughout the country have caused a brutal drop in sales in the sector. According to data from the National Chamber of the Restaurant and Seasoned Food Industry (CANIRAC), eight out of 10 establishments have had no sales for more than 40 days. The organization estimates that by the time lockdown ends, the damage to the sector will be equivalent to 30 percent of the sector's GDP, which means around MX$100 billion (US$4.16 billion).
To face this situation, medium and small-sized restaurants have turned to crowdfunding platforms to raise funds and thus be able to cover the salary of their staff and other fixed expenses. Currently, in Mexico City, 329 public markets and 1,470 street markets remain open and are providing home delivery, said General Director of Supply, Commerce, and Distribution of Mexico City Gabriel Leyva.