Mobile Applications

Rappi Delivery App Subject To eCommerce Regs In Colombia

Colombia eCommerce regs

Colombian regulators have demanded that delivery app Rappi comply with electronic commerce laws, and has also launched an investigation into the app after receiving hundreds of customer complaints.

Founded in 2015, Colombian startup Rappi employs bike-riding couriers to deliver everything from grocery orders to diapers all around the region. Last month, it partnered with French pharmaceutical company Sanofi to offer healthcare services in Latin America.In addition to Colombia, the app also operates in Brazil, Mexico, Argentina, Chile, Peru, Uruguay and Costa Rica.

The Superintendency of Industry and Commerce has accused the app of going beyond initializing contact between clients and suppliers, and has instead become a “commercialization chain” subject to other regulations. As a result, the regulators ordered that the terms and conditions of be changed — and the decision is not subject to appeal.

According to Reuters, Rappi said in a statement it will comply with the orders.

In addition, the regulators will look into hundreds of customer complaints surrounding charges that differed from those advertised, as well as not fulfilling special offers, charges for canceled orders and other issues.

“In the case that charges are proved, fines of 2,000 minimum legal salaries could be imposed,” the regulator said. A fine of that amount would be equivalent to nearly $500,000.

Back in April SoftBank made a $1 billion investment in the app, making it the majority owner in the startup. The company was valued at more than $1 billion in its last fundraising round in September 2018 after it raised $220 million.

The SoftBank investment was led by the newly formed Innovation Fund, which was launched by SoftBank Chief Operating Officer Marcelo Claure for technology investments in Latin America.

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