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Rappi has generated several news this year. The main one was to become the first "unicorn business" in Colombia, realizing a market value of 1,000 million dollars. The second thing that has attracted the attention of the application this year has been its expansion in Chile and Peru. And the next novelty could be announced two years from now, a period during which the application should be made public on the Nasdaq. That's what Simón Borrero, co-founder and CEO of Rappi, who participated in the 2018 Business Summit, said.
It was not good for this digital company that started in 2015. This year also, several were indicators of the working conditions of rappitenderos, who asked for better guarantees. The spokesperson spoke about this topic, the dynamics of the application in December and its growth.
-In what state is Rappi?
– For Colombians, it seems that it is in a state of maturation, but Rappi is young. In a few years, we will see that it will be the largest technological company in Latin America. We are growing at a monthly rate of 20% and expect next year to continue growing at these levels. We are taking the lead in Mexico, Brazil, Argentina, Chile and we have just launched in Peru.
– When do you plan to list on the stock market?
– The Rappi plan is that in two years we can go to Nasdaq.
-What is the forecast of an increase in operations in December?
December's behavior is rare, as many people go on vacation, which greatly increases activity in areas such as the Caribbean coast. In Bogotá, orders fall after 22 December. However, users know that they can send gifts through the app. The peculiarity of December is that orders generated in Bogota start to grow, but are delivered to Cali or generated in Medellín and Barranquilla. People send details to their loved ones in other cities. This month, the operation can increase by 23%.
-In which cities has the dynamics of application increased?
-Cali is growing a lot and Medellín too. In the intermediate cities, they are Bucaramanga and Cartagena.
– What is the position of Rappi against the controversy of rappitenderos?
-It is a question of ignorance about the system, people believe that rappitenderos are employees and this is not true. Rappi is a platform that connects people who want to ask something to people who have the time to be diligent. It's like the yellow pages, where you searched for a plumber and you connected with him. At that time, nobody said why the yellow pages did not pay any benefits to plumbers. The yellow pages were a way to communicate with the plumber. As Rappi does with technology and so quickly, then people think that they are employees, but they are not. They are entrepreneurs.
– What is the profile of rappitenderos?
-The rappitenderos are people who work on average 14 or 16 hours a week. This is not a fixed job. These are students who leave their classes and thanks to Rappi, the race is paid or who have other formal jobs, there are many security guards, for example, who take turns and connect two or three hours at night to to have additional income There is no subordination by Rappi. They log in and out when they want and nobody will tell them anything. This is not a job. Our employees, who are over 700 in the country, obviously have all their advantages. We are a company that respects the law to the millimeter and, therefore, we have been able to grow.
-What do the rappitenderos think?
– The law clearly defines the way in which a working relationship is created and, in the rappitenderos, nothing believes it and they do not want it. If you ask the rappitenderos, they do not want to be employees, they are entrepreneurs. They do not want to respect a fixed schedule. They do not want to do all these things. They want the flexibility that gives the application. This year, we hope to close with 12,000 rappitenderos.
– How to do so for that they earn more money?
-We are very interested in the rappitenderos earn more money, but the way to earn more is not to increase the cost of orders. It is the users who pay for the address. So, if I put the address at 10,000 Colombian pesos, no one will ask for Rappi and the rappitenderos will not have enough orders. The price is set by the user and there are those who want Rappi to have a better life and gives them a better tip. All they pay for the order is 100% rappitendero, Rappi retains nothing of this, nor the tip. To make more money, we increase productivity through technology. Like, for example, geolocation technology, maps and routes that allow you to place more orders on time and earn more money.
– It was their turn to leave Santa Marta when they plan to resume their activities and in which other cities can the activity of the application be affected?
-In Santa Marta, we have no date to return, but we organize. We will not leave another city. All work well.
– How are the operations on the outside?
-Brazil is the country that develops the most at a rate higher than 30% per month. In Argentina, we did very well. We become leaders in these two countries and in Mexico. Recently, we launched operations in Peru.
-What do you expect in tax matters?
On our side, we are in the growth and investment phase. We have to think long term about building a country and I think the government agrees on this point. You do not have to be short term and stop projects that bring in millions of foreign investments in the country. We must let these companies grow. Once profitable, they can leave a lot of money in tribute to the state, but you have to support them.
-How many ideas did you discard before you succeeded?
– Only at the university, I have mounted four companies, all failed. One was a modeling agency. We recruited the models by HI5 (social network) and managed to record 3,500 models. We do not get any of our jobs and we take a break. It is very important to start young: I started at 17 with 700,000 Colombian pesos (4,366 Mexican pesos) and I created a software company called Imagine. The advice is to start young so that you can make more mistakes and learn more.
-What do you advise entrepreneurs to not leave your idea and develop it?
-If Rappi is sold before age 15, it's because we have failed. Entrepreneurship is a vocation rather than wanting to earn money quickly. It's no longer a goal. Entrepreneurship is not easy. It is serving and taking everything we have inside to give it to the world. It's making personal sacrifices. The recommendation is that they engage if they want to create an impact, if they want to change the world. The money will come as long as the best will always be done, without you worrying about it. Investors do not spend money on someone who wants to buy a yacht. This kind of person does not change the world.
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