Tuesday, June 6, 2023

With the work of the reform, Rappi’s houses would cost $18,000: this was the sum of the warnings of the CEO, Simon Borrero, in WEEK.

The reform work presented in the Congress of the Republic by the Minister of Labor, Gloria Inés Ramírez, has surprised many businessmen, especially in the residential platforms, which is the most affected since it was in the bill. “Inexhaustible” demands for them – according to some – which endanger their continuity.

One of those platforms that has been greatly affected is Rappium, which is widely accepted in Colombia. Its CEO, Simón Borrero explained in an exclusive dialogue with SEMANA what are the objectives of the labor reform and what are the consequences for the company and the family. He also warned that, if the amendment were approved, the number of addresses in Rappi would have to increase dramatically.

According to Borrero, “Renovation has two dangerous and significant inequitable issues: taxes and breaks in the flexibility to be raptured when offering their services.”

Simon borrero says that rappius is the country's pride, because it proves that if we believe, we can do great things. But it is in our country where we want to complete the model”.

Simon Borrero says that Rappius is the country’s pride, because it proves that if we believe, we can do great things. But it is in our country where we want to complete the model”. – Photo: Daniel Reina – Week

The CEO of Rappi explained that usually the rapitenders work by the hour, they don’t do it on a schedule, and they don’t do it every day, and with this work the workers must undergo a formal reform, although according to him. “They don’t want to be kidnapped, they want to be more protected and more”.

Thus, Borrero indicates from Rappi that he wants to pay social security contributions to the rapistenders for the hours they actually work, but Unfortunately, he points out that “the Colombian system does not allow that and requires that contributions can only be made at the full minimum wage”.

“In our case, between 80 and 85 percent work sometimes, so the minority is full-time and that group does not want to pay taxes, or because their income is on average 11,000 pesos per hour, compared to the minimum wage that is now 4,800 pesos. And although they are “people who work full time have the flexibility to decide which days and at what times they do it. This reform would force them to earn a minimum wage and therefore bring in much less money,” he added.

Thus, Borrero sent a great message to the Congress of the Republic, stating that this reform effort, in addition to the negative impact, also increased families to $18,000.

“Due to the current economic situation and inflation, I understand that many customers regret that Rappi has become more expensive, but With the reform we want to charge 18 thousand pesos for the house and that restricts the service to a few, destroying the business model, and leaving many with no income.Borrero commented.

Rafael mata rodríguez is one of the 20,000 rapitenders who worked every day during the national quarantine.

Social security is one of the rights made by rapistenders. . – Photo: Karen Salamanca |

He pointed out: “We are not in Switzerland or Spain, we are in a country where people need opportunities. Help those of us who build these opportunities to maintain it in a sustainable way.

Read Simone Borrero’s full interview with WEEKLY below:

WEEK: Why are you so concerned about labor reform?

Simon Borrero: We want Rappitenders from Rappi to be able to provide more protection and comfort. However, the reform has two dangerous and notably inequitable problems: taxes and breaks the flexibility of rapistenders when offering their services.

WEEK: What is a tax?

SB: Today, anyone can connect from their phone and generate income at any time. A student who is in midterms has his day, he has to pay for his studies, he can join and earn money. As in the reformation, there is no such thing. That student must be employed for certain hours. A large part do not want to be rapist, they want more protection and more well-being, and we are in great agreement. If the reform is approved, 90 percent of the digital workers will be left and its model will be totally damaged. Rap and other platforms were built to provide additional income opportunities to thousands of people and reformed against that model.

WEEKLY: What would it mean if the tradition had the Latins hired by Rappi?

SB: These platforms remain with a small group that works between 40 and 42 hours per week, which is only possible for a few. Most digital workers cannot work a fixed schedule, not because they want to, but because they have restrictions such as childcare, studies or even other jobs.

WEEKLYWhy don’t they contribute to social security for the hours they can actually work?

SB: Because the Colombian system does not allow it and requires that you can only contribute the minimum wage. Therefore, the system does not receive contributions from those who work a few hours a week and earn 300,000 pesos a month, and this is the explanation for the high level of informality in Colombia.

WEEKLY: how many people are rapturing and how many do it full time for a long time?

SB: In the last six months, 15,000 people have earned income through Rappi. If all the platforms are joined together, there are more than 300,000 people. In our case, between 80 and 85 percent work at times, so the minority is full time and this group does not want to pay taxes, or because their average income per hour is 11,000 pesos, compared to the minimum wage which is now 4,800. pesos And even though there are people who work full time, they have the flexibility to decide what days and what times they do it.

This reform would force them to earn a minimum wage and therefore bring in much less money. There are no smaller incomes: last year, Rappi distributors received half a billion pesos per platform, but this is not in the reform plan, which seeks to impose old work models. Here at Columbia we are looking forward and trying to create more opportunities for people, not less.

WEEKLYRegardless of whether they want to be employed as rapists or not, they have the right to social security and, above all, to occupational risks when they are on the streets all day.

SB: I agree one hundred percent, you should look for them more for protection and convenience, but it should not be confused with functionality. We believe that in a modern model that understands how platform technologies work, that protection can be achieved without losing flexibility.

WEEKLY: Do you have any proposals on that front?

SB: Many, but unfortunately they do not listen to us. We want to participate in the payment
of occupational risks, but not for all hours, but for those who actually work, since due to the minimum wage we cannot contribute to those who work only three hours a week. financially unfeasible. The idea is to propose sustainable solutions.

WEEKLY: Today rappitenders do not have occupational risk coverage?

SB: We already have insurance that covers 100 percent of rapistenders against accidents, as well as health plans with Sura that give them some benefits, but we want to go further.

WEEKLY: The update seeks to improve the conditions of workers in the collaborative economy, but does not include them from transport platforms, but rather their homes. Why did they explain?

SB: We are very surprised and cannot find a reason why some workers are forced to work digitally, taking away their flexibility, and not others. And the saddest thing is that there are pulpits in Colombia that are trying to restrict it. We review the law, that companies are not governed, but industries, and we think that they will do something wrong in that way.

WEEKLY: This is not the place for this discussion. How is it treated in other countries?

SB: There are two cases in which it has already been tempered: one fortunate, the other known unlucky. The first is Chile, where they managed to expand peace and protection for most of the distributors. They heard their requests to be able to remain independent, not complying with certain hours or employment. And so they allowed those who wanted to do this, and those who wanted to be permanent employees, to be hired in this way as well. The success of Chile is proven by the fact that all the companies that were in that country before the reform are working there today.

WEEKLYBut what benefits are approved in Chile?

SB: These protections are allowed to be provided by certain laws. The misleading industry does not concern us with the occupational hazards of childbirth, but the reality is that today the law does not allow it. In Chile they have developed that constitution and equivalent protections can be given in Arles that we have here.

WEEKLYThat is, to record only the hours worked, which would be below the minimum?

SB: So that flexibility is not affected in that way, which is key in this model.

WEEKLYA failed adventure?

SB: Things happened in Spain. There they approved a fatal law, which they wished to impose on taxes, unless they knew the advantages of the platforms or the restrictions of the people. Of the six companies that operated in Spain, only half remain today and half will soon exit. Everyone is that ugly. In Spain, 70 percent of digital workers are completely excluded, and this is not an opinion or an estimate, which has happened. Businesses are also affected. Today, Rappi works with 30,000 establishments in Colombia, including stores, restaurants and small bakeries, which receive high income from platforms. The impact of that industry is unknown.

WEEKLY: As for the penalty imposed on Superindustria, what happened?

SB: We will finally pay. It is important to clarify that the process was opened three years ago on Mother’s Day 2020. We were in a pandemic and, to be honest, the operation was abused. We don’t give enough. We are the younger generation of the company. For the next three years we worked obsessively in service. We are sorry for the people who used rap during the pandemic, and for whom we saw evil. I hope they will give us a second chance and see that we have improved in service.

More than 70% of rappo's sales belong to early adopters and they are the ones who will be able to access the discounts.

Labor reform could put Rapp’s operations in the country at risk. – Photo: Photo: Rappi

WEEKLY: But the second charge is more serious, and the sale of liquor to minors.

SB: This is a very serious problem, which is more and more controlled every day. The tellers know that they should ask for the least doubt about the customer’s age, but they also encountered fake IDs and the teller’s response was to take photo IDs. I don’t know how supermarkets handle fake IDs. This has made us some users cautious and we address it with more controls and techniques.

WEEKLY: A letter to Congress about the labor of reformation.

SB: Due to the current economic situation and inflation, I understand that many customers regret that Rappi has become more expensive, but with the reform we want to charge 18,000 pesos per address and restrict this service to a few, destroying the business. example and leaving many without income. We are not in Switzerland or Spain, we are in a country where people need opportunities. Help those of us who build these opportunities to maintain it in a sustainable way.

World Nation News Desk
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