Concern of gastronomic entrepreneurs about high commissions in delivery platforms

We will ask our national president to address the issue at the level of that platform and others like it. We assume that this type of delivery also works in other cities and, therefore, we can work on it,” said the manager of the trade organization.
Since the beginning of the coronavirus pandemic, a little more than two months ago, one of the most affected areas from the economic point of view has been the gastronomy.

Since the health emergency was declared on March 18, restaurants, cooks, cafes and fast food outlets have had to stop serving the public in their taverns and dining rooms, and no longer receive their regular guests.

The reason? The risk of contagion of the disease due to the physical proximity turned these establishments into risk points due to the usual crowding of people.

In the case of Los Angeles, the measure decreed by the health authority was devastating for gastronomic entrepreneurs. According to data from the Chamber of Commerce, Services and Tourism, several businesses had no choice but to lower the curtain definitively. The numbers simply did not add up.

Another group, meanwhile, opted for the path of continuing to insist and strive to keep the business afloat, despite the impossibility of receiving customers and the reduction of operating hours by the start of the curfew at 10 pm.

And as it was done in a large part of the country where the system has been implemented, the businessmen used the platform Orders Now to promote their stores and products, the same one that is in charge of the delivery, through a network of cyclists, motorcyclists and motorists who send the order to the homes.

However, the businesspeople themselves have complained about the high value of the commissions they have to pay to this platform, which is making it difficult to maintain the business, which, due to the whole health context, is already very weak.

As explained Tatiana Igor, manager of the Local Chamber of Commerce, when Pedidos Ya began operations in the city in the middle of last year, the commission was 20% plus VAT for each sale. However, as time went by, this amount was raised to the point that the premises that were incorporated after the pandemic, must pay a commission of 28% (plus VAT). In other words, practically 40% of the sale is for the aforementioned technological platform.

The professional stressed that from the information provided by members of the trade organization and other non-associates, it has been possible to make an overview of the worrying situation they face, even more so when those affected by the collection of such fees are the most affected by the closure of their shops due to the health emergency.

While recognizing that part of the fee could be passed on to the consumer, entrepreneurs often do not do so, or do so only for part of the amount, because of the need to maintain customers and avoid informal competition.

And as if that were not enough, he explained that the platform does not work with an immediate transaction since when the sale occurs, the money is not deposited immediately in the supplier’s account, but only after 15 days.

For us, it is super important that this issue is addressed because, the truth, with the margins with which the gastronomic companies work and the few sales (the delivery has not solved the issue of sales), is too much, “said Tatiana Igor.

 

MANAGEMENT

For the same reason, Tatiana Igor said that the issue will be raised at the next weekly meeting with the governor of Bio Bio, Ignacio Fica, and the regional mayor Sergio Giacaman, in the meetings held through the trade association that brings them together.

However, he placed his hopes in the steps that the National Chamber of Commerce could take to reach an agreement satisfactory to the parties. Negotiations and talks between the parties involved can enable us to reach very good agreements. We will therefore ask our national president to address the issue at the level of that platform and others like it. We assume that this type of delivery also works in other cities and, therefore, we can work on it’, he added.

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