What is open delivery and how should it change the delivery market?

If you follow the news well, you may have already heard about open banking, a future model of financial system standardization in which customer data will be easily shared, so that consumers can seamlessly migrate from one bank to another. Now the delivery sector is discussing something similar: the open delivery.

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Before explaining this, it is necessary to bring a little context. This market is made up of different actors: there are apps and platforms, which work in the marketplace scheme, that is, as a free space for those who want to sell their food; there are the bars, restaurants, kitchens, supermarkets and lunchbox suppliers who manage the flow of meals; there are the deliverymen and their respective logistics; there are systems that accept different forms of payment; and of course, there are the customers.

Until then, each delivery platform did everything in its own way, with its own data management and processing software. If a restaurant joins iFood, it needs to register, but if it also wants to be on Uber Eats, it will have to repeat the entire process, with minor changes. In short, in terms of information technology, platforms do not “talk” to each other. “This creates a very high complexity, and not only with order data, but with menus, delivery addresses, payment methods”, explains Miguel Neto, CEO of Quero, Sergipe platform.

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    What the model of open delivery will do, at least in theory, is standardize everything. The debates are still taking place at the initiative of the Brazilian Association of Bars and Restaurants (Abrasel), but if the companies decide on the technology protocols, the same open source system will be responsible for managing all delivery services. And with that, bars and restaurants would have more freedom to enter or leave any platform.

    “It is a solution that standardizes information, saves time and facilitates the connection of establishments to platforms, in addition to organizing the relationship between players of logistics, technology, payments. This brings more competition and therefore more productivity and efficiency for delivery. A democratic and inclusive solution”, says the CEO of Abrasel, Paulo Solmucci, on the organization’s website.

      The competition will be fairer, in the view of those who take over idea. “If you have a player that dominates more than half of the market, it creates a very high dependency on it, as is the case with iFood. Abrasel saw this and with the open delivery he hopes to take this pattern out of iFood, so that other platforms can participate”, he argues.

Image: Reproduction/Kai Pilger/Unsplash

According to Folha de S. Paulo , the project has already reached the first version and was presented to restaurants in the second (). “The most relevant companies are still reluctant to join, as it is a very new thing, there are several interests of each company. But almost all platforms are enthusiastic about it”, says Neto.

The article in Folha

says that iFood accepted Abrasel’s invitation to participate of the open delivery governance board, but has not yet defined whether it will join the future platform. Rappi said to think about it, and Uber, owner of Uber Eats, did not respond.

According to Abrasel, the advantages of the model are:

    Ease of connection

: with an open model, the exchange and transfer of data from restaurants will flow more easily between platforms ;

More visibility for restaurants

: a small establishment that previously only included one or two services may be in all in a simple way, expanding your digital presence;

Better management of data: any changes and updates may occur on several platforms at the same time, such as new items on the menu or change of address;

  • Better logistics
    : the new model must allow an easier connection of restaurants with all third-party meal delivery companies;

  • Lower rates

    : prices charged by platforms may fall with increased competition:

  • Reduces chances of monopolies: in March of this year, the Administrative Council for Economic Defense (SG/Cade) imposed a preventive measure against iFood to prohibit you sign exclusive contracts with restaurants using their market power. The open delivery model will be an additive to maintain the free market and avoid situations like this, according to Abrasel.

    Only time will tell if the

    open delivery will succeed. For now, new startups in the sector, such as Quiq and Delivery Center, are already experimenting with open platforms. There is also the expectation of fostering new companies for the sector if large companies decide to unify their protocols.

    Source: Abrasel, Folha de S. Paulo

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