iFood announces 50% increase for deliveries all over Brazil

RIO DE JANEIRO, BRAZIL – iFood announced this Friday (18) that it would increase by 50% the minimum value per kilometer driven for delivery people, from R$ 1 to R$ 1.50. In addition, the minimum distance, i.e., the minimum amount paid to deliverers for delivery, has been increased from R$5.31 to R$6.

According to the company, the new prices will take effect on April 2 and will benefit active application providers throughout Brazil and all carriers. According to the company, the adjustments will impact 50% of routes currently traveled by motorcycle and 70% of deliveries made by bicycle.

Claudia Storch, director of operations at iFood, said the pricing policy update is a way to “recognize the work of our partners.” She argued that the new values align with what employee advocacy groups consider ideal.

“The adjustments were the main demands we heard from delivery workers through surveys, hearings, and at Brazil’s first delivery workers’ forum, which we held with category leaders in December 2021,” she said. Through this type of listening and by observing the macroeconomic scenario, we understood that increasing revenues is their main concern,” he stressed.

Storch said that increasing the app partners’ revenue is urgent mainly because of factors such as inflation and the recent fuel price hike. She explained that the values would be reviewed periodically to determine if further adjustments were needed.

“With the increase, delivery drivers who work 169 hours a month now earn R$3,020 gross per month, more than 89% of the Brazilian population. In this case, the average net profit per hour worked is 2.5 times higher than the minimum wage and 33% higher than the ceiling for motorcycle couriers,” he explained.
Reduction in profits

In an interview with Tilt, the operations manager of iFood said there would be no increase in fees for customers or operations. In addition, the executive pointed out that the financial viability of the adjustment came as a result of the platform reevaluating its internal costs and seeing a decrease in profits.

Over the next 12 months, the delivery brand promised to pass on more than US$3.2 billion to delivery partners.