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Weekly Roundups

Restaurant Industry Hopeful for More Support from Delivery Apps

By MBN Staff | Thu, 01/21/2021 - 09:20

This week, after long discussions with the government and protests, restaurants in Mexico City reopened their doors despite the red epidemiological traffic light. However, the restaurant sector is asking for more support from food delivery apps, as high commissions are working against them in the midst of this crisis. On Jan. 12, Mexico City Mayor Claudia Sheinbaum said during a press conference that she had a meeting with representatives of Uber Eats, Rappi and Didi Foods to discuss commissions and reach a mutually beneficial agreement.

In the meantime, some apps have already launched support programs for their platform partners. DiDi Food, for example, called on restaurants to join before Jan. 25 at a 15 percent commission for the first two months they operate on the platform, a 50 percent reduction on the app's usual 30 percent commission. Those already part of the app will see their commission reduced to 22 percent. 

Rappi, in alliance with Banorte, launched the RappiContigo program, allocating MX$250 million (US$12 million) to support restaurant partners. “The COVID-19 pandemic has meant great challenges for this industry. From the beginning, we have implemented several actions focused on reducing the economic impact for our allied restaurants. RappiContigo is one more of these actions, which we know will help our partners to move forward," said Alejandro Solis, CEO of Rappi Mexico, in a statement.

Uber Eats has committed MX$1.1 billion (US$55 million) to support restaurants since the pandemic hit Mexico in March. This amount has been reflected in free deliveries for users and discounts on commissions, the company said in a statement in December. “At Uber Eats, our commitment to the restaurant industry in Mexico continues. We know that the recovery from the COVID-19 pandemic will take time, so we will continue to work hand in hand with our app partners to move forward together,” said in a statement José García-Pimentel, General Manager of Uber Eats Mexico.

According to the National Chamber of Restaurants and Seasoned Food Industry (CANIRAC), 15 percent of its registered restaurants have closed permanently, which means the closure of just over 90,000 restaurants. The restaurant sector, reported CANIRAC, contributes 15.3 percent to the Gross Domestic Tourist Product and 1.3 percent of the national GDP.

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