Panel SA: Restaurants say the end of Uber Eats service is a bomb in the sector

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Uber’s decision to end its restaurant meal delivery service through Uber Eats in Brazil fell like a bombshell on the sector, according to Paulo Solmucci, president of Abrasel, an association of bars and restaurants, who says he fears the consequences of the increase in concentration of the company. activity.

He says that Uber’s announcement is scary because it comes weeks after the decision of the shareholders of the startup Delivery Center to also close the company’s operation, a sign that the Brazilian market may be unattractive to investment in the area.

The sector has been in a tug of war against iFood. Since last year, companies like Rappi, Uber Eats and 99Food, in addition to the restaurant association, have gone to Cade (Administrative Council for Economic Defense) to complain that the food delivery giant imposes barriers on competitors by forcing a model of exclusivity agreement with the restaurants.

“We intend to charge a firm opposition from Cade because we are increasingly concerned about this market concentration”, says Solmucci.

Abrasel has been trying to promote an open source model for standardizing menus and orders, called Open Delivery.

Uber Eats will stop making restaurant deliveries in Brazil after March 7, according to an announcement made by the company this Thursday (6).

Without the restaurants, the company will act on two other fronts. The so-called Cornershop by Uber will deliver to supermarkets, wholesalers and other stores, while the Uber Flash service will deliver packages.

Cornershop by Uber works in just 100 cities in Brazil, but according to Uber, the number of orders nearly tripled in 2021. The company also plans to expand its corporate product, Uber Direct, for same-day delivery.

“Uber continues its commitment to its more than 1 million driver partners who generate income by making trips and deliveries through the platform – the volume of trips in Brazil is already greater than that recorded in the period before the pandemic”, the company said in a statement. .

Sought by Panel SA, iFood says it does not comment on business decisions of other companies. “With regard to the food delivery market, iFood clarifies that the online delivery sector continues to evolve with the frequent entry of new competitors and the emergence of new business models. This intense competition favors restaurants, delivery people and consumers, and promotes more innovation for the entire ecosystem”, says the company in a note.

iFood also states that its commercial policies are in strict compliance with competition legislation and that it continues to cooperate with the responsible authorities.

with Andressa Motter e Ana Paula Branco

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