City Hall launches delivery app that provides zero fees for restaurants and double pay for delivery drivers

Rio de Janeiro City Hall launched the first food delivery app developed by the government in Brazil on Monday (28/3). With the lowest fee on the market, Valeu, designed by the Municipal Finance and Planning Department, will have zero cost for restaurants on orders up to R$100 and can double the remuneration of delivery drivers.

 

– In 2020, I heard for the first time that iFood was charging a very high fee for deliveries. In addition, I started to see the working conditions of the delivery drivers, who were earning a pittance. So I said we should create Taxi.Rio for restaurant delivery – said Rio's mayor, Eduardo Paes, referring to the taxi app created during his previous administration.

 

Suffocated by service fees that range from 28% to 41% on the value of orders on other apps, restaurants that join the municipal platform will have a break. The City Hall will not charge a service maintenance fee on purchases up to R$100, which represents 85% of the total orders on other apps. The charge will be staggered on orders from R$100, set at 2% on those ranging from R$100 to R$200 and 5% on those above R$200. With this, the savings for establishments will range from 17,5% to 21% on Valeu.

For delivery drivers, earnings could be double the remuneration they receive using other technologies. For purchases up to R$100, the professional will receive a minimum of R$7 per order, 27,2% more than the average of R$5,5 practiced in the market. For purchases above this amount, the delivery driver will receive, in addition to the minimum of R$7, an additional 2% of the order value, which will already represent a 100% increase. The amounts will be paid directly by the restaurants.

 

– This was the economic activity that reinvented itself the most during the pandemic. We are allowing these people to earn money and develop themselves. – said Eduardo Paes.

 

The app, developed by the Rio Municipal IT Company (IPLANRIO), is currently in the testing phase, but is available in the Google and Apple stores for the public to download, familiarize themselves with, and place orders. The tool is already launching with registered restaurants in several locations throughout the city and is open to new members, with no fees or monthly payments. Establishments interested in joining Valeu can find a step-by-step guide here. address. At this time, the platform will not be open for delivery person registration. Orders will be delivered by professionals already linked to the establishments.

In addition to the more competitive rate, the app will also be more democratic. Unlike what happens with market technologies, where larger establishments pay to be featured on the homepage, Valeu's algorithm will prioritize restaurants closest to the user. The estimate is to reach 2,5 establishments by the end of 12 months of operation.

 

– We created platforms, years ago with Taxi.Rio and now with Valeu, that address market failures such as excessive intermediary fees. When we set a zero fare for purchases up to R$100, this creates a break from other apps. Bars and restaurants will have lower costs and delivery drivers will earn more. Now, we need bars and restaurants to join in for the platform to work, for them to come in and post their menus. Only then will it make sense to consumers. That is why we insist on the advantages of Valeu for everyone – stressed the Secretary of Finance and Planning, Pedro Paulo.

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March 28th, 2022

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