iFood and Domicilios come together in the country, and they will do so with social security
Last March, the Superintendency of Industry and Commerce gave the green light to the merger between the iFood and Domicilios.com platforms. With this decision, the applications will start working as one from the month of June.
Tiago Luz, general manager of iFood in Colombia, a Brazilian company that has been present in the country since 2015, maintains that with this decision they seek to become the leaders in this market, doubling their geographical presence.
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The head of this new merger also talks about the decision to pay the social security of the distributors and what should be taken into account in the country regarding the regulation of this type of platforms.
The SIC authorized the merger between iFood and Domicilios.com, how was this agreement reached?
Domicilios is a pioneer brand in this market, it is a brand that cares, like iFood, about doing things well in this sector. We also have the color red that unites us, and what we want with this merger is to achieve leadership in this market. We are confident that we will provide users with the best experience when ordering food for their home.
How long did the talks between the two companies last to achieve the merger?
We announced that we had reached an agreement in April of last year, and the merger was approved by the SIC in the last month. We are very excited, now we are working together in the two companies so that we have an integration process that is very positive.
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We cannot accept that a domiciliary does not have access to the
health, we believe that all
platforms should be responsible for the development of this ecosystem
What’s next for the two platforms from the second half of this year?
iFood is the largest home food platform in the entire region, we already have more than 50 million orders per month and we are growing rapidly in Colombia. That is why we are excited to join with Domicilios, which is the pioneer brand in this field in the country. From the second semester we will continue with the iFood brand, which is a daring brand, close to people, that respects food.
The second semester of the year will be a semester of tremendous growth. Today we operate in 50 cities in Colombia, but we know that it is a country with more than a thousand cities and in the next 12 months we will double our presence in Colombia with more than 100 cities, where citizens will be able to order food through iFood.
What will happen to users who have the Home application?
We are developing this application migration plan, but from now on I invite all users to download the iFood application.
How will the integration be between the domiciliary of the platforms?
We will continue as independent platforms until May 31, nothing is changed until that date. The first day of June is when we will begin to operate as a single company, and we will maintain the commercial agreements that we have with our allies, we will continue to seek the best conditions for generating income for them.
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On behalf of the domiciliary, we will continue with the social security payments. It is worth clarifying that Domicilios.com and iFood are the only two platforms in Colombia that contribute to a social security system. We believe, and in that we are very sure, that this is the correct decision, that is why it is not changed, it is not affected. We are concerned about the entire chain and the ecosystem and we believe that we are responsible for the development of this, so that homeowners have an opportunity to generate worthy income.
How do you calculate the contributions you make for the domiciliary?
All domiciles that operate iFood are eligible to sign a document authorizing iFood to make social security contributions on their behalf. This contract is given independently of the amount that the person generates through the platform. That is, if the domiciliary earn more than a minimum wage, the contributions go to the payroll; If they generate less than a minimum wage, we contribute to the Social Protection Floor. In this way we are covering 100 percent of the distributors.
It is worth clarifying that these contributions do not affect the generation of household income, it is an additional benefit for them. We cannot accept, in any way, that we have a domiciliary that is not covered by the country’s public health system.
Have you thought about expanding the range of services you have within the platform?
Food is at the center of everything, but we know that we have opportunities around food that we must take advantage of. We are studying all the opportunities we have, but food will continue to be the most important thing, because it is what we believe in.
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What are the goals that have been set for this first year with the merger?
Colombia is a very important country, Colombians have the culture of ordering food at home. On the other hand, we see that for restaurants the income generated through homes is very important; then we see that there are conditions to continue growing.
That is why we plan, in addition to doubling our geographic presence in the country, from 50 to 100 cities, to double the volume of orders that we generate through the platform. It is double the income that we are going to generate for the entire ecosystem.
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How do you think these collaborative economy schemes should be regulated in Colombia?
We are part of Alianza In, our orientation has always been to do things well, we work hand in hand with the authorities to somehow contribute with our international experiences. In many ways we believe that we can contribute to the decisions that are currently being made.
For example, what we are doing in terms of social security, we believe it is correct to do it in Colombia. We cannot accept that a home does not have access to the public health system, we believe that all platforms should in some way be responsible for the development of this ecosystem and contribute to this growth, so that everyone benefits.
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MARÍA FERNANDA ARBELÁEZ M.