If you're the type that likes to compare prices before making a purchase, especially when it comes to food, you've already noticed that iFood it has some exclusive stores – especially from large chains. Rappi, the main opposing company, felt harmed by these exclusivity contracts and filed a lawsuit in 2020, which was completed a few days ago. Discover how to iFood rules change after Rappi's action can benefit consumers:
New exclusivity contracts with iFood
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Food delivery apps have become good allies for different audiences. Whether for those who don't like to cook, for those who don't have time or for those who like to diversify, ordering food via iFood or related apps is a “hand in the wheel”. However, those who like to compare prices before making a purchase can already notice that there are some stores that open only on iFood.
Due to this, competing companies are not satisfied with some exclusivity contracts. A
rappi, specifically, filed a lawsuit with the Administrative Council for Economic Defense (Cade) against iFood, and, starting in 2023, the No. 1 company in deliveries will need to adapt to the proposed changes. Learn more about the case:What is the argument used by Rappi against iFood?
iFood establishes an exclusive contract with some partner restaurants and snack bars. For this reason, it is quite common for you to find certain famous networks available only there. Rappi was not happy with this and claimed that this exclusivity model was hindering free competition in the sector. This action, taken in 2020, was only resolved this year.
How does the exclusivity contract work?
Before the change in the rules, iFood offered better rates and disclosure conditions for partner stores in exchange for exclusivity in advertising and selling their products.
New exclusivity rules
After Cade's determination, the food delivery giant will need to adapt and respect the agreements made. The new exclusivity contracts will need to be modified according to the rules, which are in effect for four years. Are they:
- New exclusivity contracts can only be limited to two years;
- Only 25% of iFood sales can be made by exclusive partners;
- Signing of exclusivity contracts between stores with more than 30 establishments is prohibited;
- Contracts that are more than two years old must have a minimum quarantine period of one year.
This will impact the population as competition between applications will increase. For this reason, they will have to come up with new ways to attract customers – either by reducing costs for restaurants or by providing discount coupons.
