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Supply apps in Mexico are quickly chopping charges as eating places battle

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© Reuters. FILE PHOTO: Coronavirus disease (COVID-19) outbreak in Mexico City

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MEXICO CITY (Reuters) – Delivery apps Uber (NYSE 🙂 Eats and Rappi have temporarily lowered their fees for restaurants in Mexico, the companies said on Friday under pressure from industry groups to ease the burden on restaurants from tougher ones Coronavirus restrictions are affected.

Mexico's populous capital and several states are partially locked as authorities grapple with an increase in coronavirus infections that have weighed on hospitals. Mexico ranks fourth in the world for the most confirmed deaths.

In Mexico City and elsewhere, restaurants with no outdoor seating are only available for takeout. The restaurant association CANIRAC warned that this could be a death penalty for companies that rely on delivery apps.

"Maintaining the same pre-pandemic commissions is no longer sustainable for thousands of restaurants," the group said in a statement earlier this week, adding that the apps typically charge around 30% commission.

In areas with the strictest health measures, Rappi announced that it would cut commission to 16.5% in February, while Uber Eats would cut commission to 17%. Both charge 19% in March and 22% in April.

Didi Food, another app that delivers restaurant meals, announced earlier this week that it would offer a 22% discounted commission.

Since the beginning of the coronavirus crisis, 13,500 restaurants in Mexico City and the surrounding urban zone have closed, which corresponds to at least 80,000 job losses, according to CANIRAC.

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