Rappi to give restaurants a break (Terms and Conditions may apply)

Rappi

Contxto – You know your week would be missing something if there wasn’t any Rappi-related news in it. And as usual, the Colombian startup is cooking up another project. This time around, it’s looking to get in good with restaurants in Mexico.

Rappi reputation with restaurants

It’s no secret that many food joints are at odds with Colombian Rappi. Their biggest beef with the company comes from the commission they’re charged for every order placed over the platform. In Mexico for example, businesses have claimed they’re charged rates as high as 40 percent.

However the startup says the fee stands somewhere between 20 and 25 percent. The rate depends on whether the business is registered exclusively on the Rappi app or it’s also in cahoots with competitors like Uber Eats and Didi Food. 

But that’s not the only factor, Rappi takes into account.

“It also depends on other variants like the type of operation the restaurant runs, the average check, among other aspects that can shift the commission slightly,” says Alejandro Solís, Country Manager for Rappi in Mexico.

Now I don’t know if “slightly” is the best word if it leads to a perceived 40 percent jump.

Anywho, this has resulted in the rise of multiple startups that offer alternatives for restaurant managers. There’s Argentine Tugou, Chilean Justo, Costa Rican Biko… wherever Rappi is found, there’s likely an “anti-Rappi” business.

But that’s the price of fame. 

Reconciling with restaurants

In any case, the Colombian unicorn has been seeking to get back into restaurants’ good graces in the past couple of weeks.

In July, it announced the launch of “Propio,” a platform for restaurants to manage their business. Some of its features would even be free to use throughout the remainder of the year. 

You know, since Covid is giving ‘em a hard time and all of that. Well, that and Rappi’s commission is eating out of restaurants’ already slim profits which makes for bad PR.

And more recently, the super-app-in-the-making is stretching another olive branch to restaurants in Mexico.

Partnering up for benefits

Last Wednesday (26) the startup announced that it’s forged a partnership with Mexico’s National Chamber for the Restaurant Industry and Condimented Foods (Canirac).

As a result, businesses will be reimbursed up to 20 percent of the fee Rappi charges them. But it’s worth noting that there are some strings attached to this deal.

First off, it shall only be valid for establishments that are exclusively on the app and registered under the Canirac. Second, reimbursements will only apply for electronic transactions. Third, only businesses that had sales for up to MXN$250,000 (~US$12,000) in July can apply.

Last but not least, these benefits will only be effective until the 30 of September.

Should you know of a restaurant that complies with these aforementioned conditions, let ‘em know they can sign up here. But they only have up until next Monday (31) to do so.

Related articles: Tech and startups from Colombia!

-ML

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