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Discovering the Top Delivery Apps in Mexico: A Comprehensive Guide
- This article highlights some of the most popular delivery platforms in Mexico. It provides a comprehensive overview of these apps' features, services, and benefits, making it easier for consumers to choose the best option for their delivery needs. The author recognizes the significant impact the delivery industry has had on the Mexican economy and emphasizes the importance of these apps in helping businesses and individuals access essential goods and services.
By 2022 there will be about 34.4 million users of delivery apps in Mexico. The food delivery market is particularly significant, contributing to the rise of dark kitchens. The delivery apps with the most presence in Mexico are the already consolidated Uber Eats, DiDi Food, and Rappi. Still, new projects such as JOKR, iVoy, and Veloz also have taken hold.
The Delivery Boom in Mexico
Due to social distancing caused by the pandemic, digital consumption has increased globally. Several companies had to go digital to adapt to this new reality, and digital-native companies benefited from this event, particularly those related to home deliveries.
Amazon and Mercado Libre are among the most popular apps and platforms in the delivery industry. However, although they sometimes deliver products within a few hours, their proposal is not entirely immediate.
Before the health crisis, these apps did not have such a high impact in Mexico due to security, logistics, or lack of payment options. However, the pandemic sped up digitalization. Although little by little, several businesses have reopened their stores, delivery applications are here to stay.
The consultant agency Statista Digital Market Outlook predicts that by 2022 there will be 34.4 million users of delivery apps in Mexico, 134% more than in 2017. According to data from the Mexican Association of Online Sales (AMVO), 83% of Mexican users who use a delivery app today:
- 76% order food.
- 60% order supermarket products.
- 53% make shipments.
- 14% buy medicines.
2022, the Biggest Growth in Food Delivery Apps
As mentioned before, the area with the highest growth was food delivery. According to Statista, in 2021, the highest revenue from online food delivery came from Brazil, with 2.8 billion dollars, and Mexico’s second place, with 2.1 billion.
This growth behavior continues this year. Revenue in the food delivery segment is forecast to reach 1.9 billion dollars in 2022, with a user penetration of 22.9% and an annual growth rate (CAGR 2022-2026) of 8.93%, projecting a market volume of 2.7 billion dollars by 2026.
Furthermore, the number of users may rise to 42.4 million by 2026. Restaurant-to-consumer delivery remains in the lead as the largest segment, with a projected market volume of 1.1 billion dollars in 2022.
Food Delivery and Dark Kitchens
According to AMVO, in 2019, food delivery was the second purchase made by Mexicans through digital platforms, after fashion and beauty products. Today, food delivery is in the first place. Statista predicted that by the end of 2021, Mexico would invoice more than 2.1 billion dollars in food delivery.
Due to this global consumer trend, a new e-commerce business model known as dark kitchens arose in London. These dark kitchens function only to prepare food for home delivery. By forgoing the physical space, these businesses rely heavily on delivery services.
Dark kitchens are advantageous for those who plan to start a food brand since they can reduce investment costs and personnel expenses. It also increases competitiveness in the market and the delivery service.
Strongest Food Delivery Apps in the Mexican Market
The growth of the online sector has generated great competition among digital companies, which is why it is increasingly difficult to position and remain a leader in the market. To stand out, companies must work hard to offer fast and reliable deliveries with a broad portfolio of products, offers, good customer service, and various forms of payment.
According to a study by the financial optimizer Fintonic, the most popular food delivery platforms in Mexico are Uber Eats, which in the first half of 2021 registered 47,262 users, DiDi Food with 24,188 users, and Rappi with 23,754 users.
This app is a branch of the Uber transportation service and is Mexico’s most used food delivery app. Users can order from local restaurants from their app or website and receive food with a 5% to 10% service charge, depending on their distance.
According to Deliverect, for each order, Uber Eats also charges restaurants a commission based on the number of branches or regions it covers, among other aspects.
To offer its products on Uber Eats, the restaurant must fill out a form with all its information, such as name, address, and the number of branches. Uber will contact the restaurant managers to have an integration session. If the restaurant is active on the platform, Uber Eats takes care of delivery logistics and payments.
This app belongs to the Chinese multinational DiDi Chuxing, with a presence in the United States, Mexico, Japan, Costa Rica, the Dominican Republic, and Colombia.
To offer products on DiDi Food, you must enter their website, create an account and submit some documents to register the restaurant. Depending on the city and the desired services, the owner will pay a registration fee. The service options for a restaurant that registers with DiDi Food are:
- Making sales through the app and taking care of the food delivery. The service fee for self-delivery is 18%.
- Sell your products through the app and delegate deliveries to couriers. The service fee for delivery through the platform is 30%.
Rappi is a Colombian app that manages the delivery of food and other products and services. For example, users can order food from home, carry out errands, buy supermarket products, medicines, etc. All through its app, which connects users with their couriers.
A gigantic shopping mall where everything can be found immediately.Rappi
Like Uber Eats and DiDi Food, Rappi charges a commission to restaurants that profit from their services but offers a 30-day commission-free promotion.
Delivery Apps in Mexico
In addition to Rappi, there are other delivery platforms that have positioned themselves in the delivery market in Mexico.
iVoy, the courier service, promises to deliver orders in less than 90 minutes or the same day.
The JOKR app offers immediate delivery of all kinds of products. Its value proposition is the speed of deliveries in a maximum of 15 minutes. On its platform, it provides local products as well as independent brands.
Veloz offers delivery services to businesses in order to boost their sales. It does not charge commissions and works 24/7. Drivers receive 90% of the payment from the deliveries they make.
A Challenge for Delivery Apps: Break with the Controversial Practices
Delivery apps are becoming more and more popular, and this has generated a significant increase in revenue for several companies in this industry. Although these platforms have positively impacted the economy, not everyone has benefited from their rise. Several controversies have been unleashed worldwide due to its couriers and workers’ often precarious working conditions.
According to an investigation by Business Insider, Amazon drivers in the United States said they have to relieve themselves in bags or bottles due to the high quotas of packages they must deliver. U.S. Representative Mark Pocan (2nd District of Wisconsin) made this situation public in a tweet. Although Amazon first denied the accusations, it apologized to Representative Pocan, given the evidence of the facts.
Better Working Conditions for Couriers
The couriers of these platforms are not under contract; they work under a «partner» scheme, in which they receive a percentage of the shipping cost. Therefore, companies do not have employer obligations.
However, in the face of the COVID-19 health crisis, some platforms have taken action to support drivers and couriers. DiDi Food created a $10 million global fund to support its drivers and couriers who contracted the disease or are quarantined.
If they test positive, they can access help by contacting customer service and sending proof of contagion. With this, they will be blocked from the platform and will obtain a weekly payment of at least 800 pesos (40 dollars) or more according to their weekly earnings for 28 days.
In case of not being able to access a test but being placed in mandatory preventive quarantine, DiDi Food will also grant the worker a minimum amount of 800 pesos a week. However, this support will only be for 15 days. In this case, the courier must present an official medical prescription or proof of health. Adults over 65 who work at DiDi Food can also access this bonus because they are considered a vulnerable population.
Also, Uber Eats offers similar support to its delivery partners registered in its application.
In an attempt to regularize this situation, the Spanish government introduced a delivery law that changes the status of these workers. They hope that couriers and delivery people will stop being autonomous and become salaried with this law, which has generated various reactions from delivery platforms and drivers.
A 2% Tax on Delivery Apps in CDMX
Mexico City approved a 2% tax on delivery platforms for the use of road infrastructure, and it took effect on January 15, 2022. The delivery platforms must inform the Ministry of Finance of the number of monthly deliveries they make.
Couriers protested before the approval of this law because they feared that this tax would fall on them. However, according to the Tax Code, this charge may not be transferable to consumers or workers.
An Industry That Is Growing But Still Needs To Be Improved
The pandemic was an excellent trigger for the boom in the delivery industry. During this crisis, both businesses and users of delivery platforms have benefited from these apps. However, things haven’t gotten any better for couriers globally.
The increase in demand for home deliveries, the rise in unemployment, and the minimum entry requirements for couriers turned many towards the delivery industry. Competition increased, which reduced profits and extended working hours. On top of this, delivery workers lack protection, as they are exposed to various risks when carrying out their work, especially during a pandemic.
Barely two years after the start of the health crisis, this industry has revolutionized consumer behavior and is creating new business models and job opportunities. However, governments must pay attention to the labor rights of couriers, and delivery platforms must reassess this situation. Taking action is essential for workers to enjoy the freedoms that belong to them.