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Rappi

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Rappi
Company typePrivately held company
Industry
  • Transportation,
  • On-demand delivery (e-commerce)
Founded2015; 9 years ago (2015)
HeadquartersBogotá, Colombia
Area served
List
ProductsMobile app
Services
RevenueUS$ 220 million (October 2018)[1]
Number of employees
1,500 employees (October 2018)
25,000 delivery persons (October 2018)[2] c.20.000 couriers (October 2018)
Websiterappi.com

Rappi is a Colombian on-demand delivery company headquartered in Bogotá, Colombia, and with main offices in São Paulo and Mexico City. It was founded in 2015 by Simón Borrero, Sebastian Mejía, Felipe Villamarín and Guillermo Plaza, and is present in 9 countries (Colombia, Mexico, Costa Rica, Peru, Ecuador, Chile, Argentina, Uruguay and Brazil) and more than 200 cities.[citation needed]

History

Rappi was founded in 2015 by Fernando Sierra Maya, Felipe Villamarin, Sebastián Mejía, and Simón Borrero, four Colombian entrepreneurs. The initial investment in Rappi was $2,000,000 (equivalent to $2,160,958.92 as of 2019[3]). The company generates revenue by taking an average of 17% from each retail transaction.[1]

Rappi entered Y Combinator's Winter 2016 batch, generating additional investment.[4][5] In August 2018, the company raised another $200 million in funding.[6] SoftBank became a major stakeholder in Rappi in April 2019 with a $1 billion dollar investment.[7]

In June 2020, during the COVID-19 pandemic in Latin America, Rappi announced in a live event within the application, in simultaneous for 9 countries, that from that moment on, live events could be held in the application as well as announcing the creation of 3 additional divisions in this category such as games, live sales and music.[8]

In January 2019, Rappi signed a partnership with Avon Products to distribute the company's beauty and personal care products through its platform.[9] That month, due to the Tlahuelilpan pipeline explosion and following gas shortage in Mexico, many users turned to Rappi to order gas delivered to their house, but the company had to remind them that this process was illegal.[10]

In February 2019, Simon Borrero was awarded the "Empresario del año" (Businessman of the year) award from the Colombian President.[11] Simon Borrero and Rappi et al are currently being sued in U.S. federal court for misappropriation of trade secrets.[citation needed]

As of August 2020, Rappi had more than 200,000 independent couriers actively connecting to the app in Latin America, and worked along with over 250,000 different businesses including groceries shops, pharmacies, kiosks, and office supply stores.[1]


Rappi Bank

In march 2019, Rappi partnered with Visa Inc. to offer prepaid cards in Mexico, Colombia and Brazil, together with a QR-Code based digital wallet called RappiPay. In Colombia, it reaches an alliance with Davivienda, which has the largest wallet in the country called Daviplata (with more than 10 million users), integrating the logos of both combined companies.[12]Rappi's Country Manager in Brazil said it was the first of many financial services the company planned to expand beyond delivery.[13] In June 2020 Rappi announced a partnership in Mexico with Banorte to "revolutionalize digital banking services".[14]

On November 6, 2021, Rappi and Davivienda announces that Rappi Bank will arrive in Colombia in 2022, an entity that would absorb the 760,000 Rappi Pay customers and more than 100,000 RappiCard credit card customers in Colombia.[15]

Working conditions

In October 2018, some delivery people of Rappi took to the streets. The company has been criticized for its working conditions, from the employees side and for a lack of customer care from their clientele.[16][17][18] Rappi has allegedly failed to follow regulations regarding customer support and faces possible fines from government regulators.[19] The [Colombian] Superintendency of Industry and Commerce has formulated an investigation against Rappi S.A.S. "Not having a complaints channel for their customers, the fact that there is still confusion in the terms and conditions ... the final price for the consumer still being unknown and variable, the fact they are still not giving full attention to the complaints ... calls our attention, " Superintendency head Andres Barreto told journalists.[20]

The success of the company has been boosted by the Venezuelan refugee crisis,[21] with more than 1.3 million Venezuelans having fled to Colombia as of July 2019.[21] As many new migrants struggle to find regular jobs, apps like Rappi allow a quick access to a first moderate revenue.[21]

References

  1. ^ a b c "Colombian 'Super App' Is a Unicorn. It Wants to Be a Tech Giant". Bloomberg.com. 3 October 2018.
  2. ^ Boris Miranda, Rappi, el "Amazon de Colombia" que se convirtió en el emprendimiento más exitoso del país (y que genera protestas en algunas ciudades de América Latina) (in Spanish), Bbc.com, 26 October 2018
  3. ^ "$2,000,000 in 2015 → 2019 | Inflation Calculator". www.in2013dollars.com.
  4. ^ "Rappi, la revolución del e-commerce viene de Colombia". Forbes. 17 April 2017.
  5. ^ Kokalitcheva, Kia (8 November 2016). "Colombian Startup Rappi Wants to Deliver 'Everything'". Forbes.
  6. ^ José Orozco, Rappi se convierte en "unicornio" gracias a una nueva ronda de financiamiento (in Spanish), Developerz.software, 7 September 2018
  7. ^ "Rappi Raises Up to $1 Billion from SoftBank Group Corp. and SoftBank Vision Fund". Business Wire. 30 April 2019. Retrieved 1 March 2020.
  8. ^ "Latin American Delivery App Rappi Launches Livestream Offer With Manuel Medrano". Billboard. Retrieved 18 November 2020.
  9. ^ Colombia: Avon se alía con Rappi para trabajar en Brasil y Colombia (in Spanish), American-retail.com, 15 January 2019
  10. ^ Rappi se enfrenta a usuarios que piden gasolina desde la app en México (in Spanish), Fayerwayer.com, January 2019
  11. ^ "En la distinción a los fundadores de Rappi como 'Empresario del Año 2018', del diario La República, el Presidente elogió el poder del emprendimiento de los jóvenes". id.presidencia.gov.co.
  12. ^ "Rappi wants to change banking". Retrieved 09 March 2022. {{cite news}}: Check date values in: |access-date= (help); Unknown parameter |/date= ignored (help)
  13. ^ "Delivery startup Rappi partners with Visa to offer pre-paid cards in Brazil". Reuters. 19 June 2019. Retrieved 20 October 2019.
  14. ^ https://www.banorte.com/wps/portal/gfb/Home/noticias-banorte/noticias-2020/rappi
  15. ^ [hhttps://ir.davivienda.com/wp-content/uploads/2021/07/DAV_Rappi_Davivienda_-Press_Release_03092021.pdf/ After launching the RappiPay digital deposit and credit card, Rappi and Davivienda move forward to obtain a financial institution license]
  16. ^ ¿Por qué protestan los trabajadores de Rappi? (in Spanish), Wradio.com.co, 20 October 2018
  17. ^ Testimonios que explican la protesta de los 'rappitenderos' en Bogotá (in Spanish), Semana.com, 20 October 2018
  18. ^ El infierno de trabajar en Rappi (in Spanish), Las2orillas.co, 15 October 2018
  19. ^ Cobb, Julia Symmes (13 November 2019). "Rappi failed to comply with regulatory orders, Colombia says". Reuters. Retrieved 1 March 2020.
  20. ^ Editorial, Reuters. "Business & Financial News, U.S & International Breaking News | Reuters". U.S. Retrieved 4 March 2020. {{cite web}}: |first= has generic name (help)
  21. ^ a b c Rueda, Manuel (29 July 2019). "Venezuela migrants propel billion-dollar delivery app". AP NEWS. Retrieved 29 July 2019.
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