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Uber Eats and Its COVID-19 Plan

Jose Garcia-Pimentel - Uber Eats México
Director and General Manager

STORY INLINE POST

Jan Hogewoning By Jan Hogewoning | Journalist and Industry Analyst - Thu, 04/09/2020 - 09:23

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Q: What steps have you taken with your restaurant partners to manage the COVID-19 pandemic?

A: Together with our stakeholders, Uber has taken very robust steps to manage this situation. Following similar steps in the US and Australia, we have announced a comprehensive package for Latin America to support independent restaurants in Mexico. Approximately 70 percent of the restaurants on the platform are small businesses. That is significant considering that the small-restaurant industry is a key piece of the Mexican economy. One of the largest employers nationwide, these restaurants are a significant driver of GDP growth. A healthy restaurant industry should translate into a healthy Mexican economy. We want to make sure they receive the support they need, in line with our mission to ignite opportunities and to serve the cities in which we operate.

We are providing support in different ways. Firstly, we are offering free delivery for a select group of small businesses. Providing free delivery is a key way in which we can invite our consumers to try these fantastic restaurants if they have not already done so. The second way is to improve their liquidity. We usually transfer funds to the restaurants on a weekly basis; every seven days we pay them the money we receive from our clients. We are giving restaurants faster access to their money by moving to daily payments. This will help them improve their cash-flow management. In this constrained environment, having access to money is fundamental.

We have also opened an option to support restaurants. This makes it easier for users to support their favorite restaurants. This will be enabled temporarily so that users can make contributions through the application. This will support the staff-members, cooks, cleaning staff and whomever else who makes the food possible.  This option will be available for 100 percent of the platform’s restaurants in Mexico.

Lastly, it is worth mentioning that our platform has expanded its coverage more and more over time. The platform is now available in a large area of ​​the Metropolitan Zone of the Valley of Mexico (including Iztapalapa and Lago de Guadalupe), the Guadalajara metropolitan area as well as various areas of Oaxaca, the Cancun hotel zone, Merida and Veracruz, among others. This will also allow more local restaurants to register and continue to generate sales.

Q: How are you protecting your delivery personnel?

A: The most relevant provision is that we are providing our partners who are diagnosed or instructed to self-quarantine by a public health organization, 14 days of earnings. This is a global policy for all cities where we operate. We do not want our delivery partners who have unfortunately contracted the virus to face the need to go out and connect with the platform. The self-employment nature of the platform gives delivery partners the liberty to connect at whatever time they wish. The platform has also added the option to deliver a food item without physical contact, where the customer can choose whether they want delivery at their door, lobby or reception. This benefits both the delivery person and the consumer.

On April 8, we announced that we will provide access to hygiene services for delivery partners. They will be able to access health services at more than 550 Oxxo gas stations in different cities of the country. Here they can wash their hands and use antibacterial gel free of charge.

In addition, we have dedicated resources to ensure that our channel conveys best practices on how to prevent the virus from being transferred between people and between restaurants. We have filed some of the key recommendations that governments have asked us to convey through our channels as well.

Q: What impact have you seen so far on the frequency of consumer orders?

A: I think we will see more impact as we move further in Phase 2 and Phase 3 of the contingency. So far, we are still operating as usual, taking steps to preempt the potential impact. We remain very close to our restaurant partners and the restaurant industry as a whole to keep updated. 

Q: Will restaurants set up their own delivery teams to compensate the drop in restaurant visits?

A: If a restaurant wants to have its own delivery service, it needs to hire people and investment in material. This costs money and takes a few weeks to launch. It is more beneficial to use existing delivery platforms.

Q: Are you foreseeing a scenario where delivery is going to be inhibited due to a possible lockdown?

A: Again, this is hard to predict. We are keeping in close contact with local authorities to understand the policies that could be implemented. We stand for best practices. Ultimately, this is within the reach and decision-making rights of the government.

Q: How do you think your business model will change after the crisis?

A: I believe there are going to be several changes. Contactless delivery promises more efficiency in food delivery at home. Another thing that will possibly grow is the pick-up option at restaurants, where you pick up your food after you have ordered it through the app. We will continue to focus on what is the core of our business: ensuring we deliver the best experience to our clients, restaurant partners and delivery partners. I do not see this changing at all. If anything, we will use more technologies and features to ensure that our clients and partners continue to favor us in the Mexican market.

Photo by:   Uber

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