About US$6 billion a year. That is the estimated figure that is lost each year in Latin America as a result of the destruction of recyclable auto parts, various market sources indicate. This drain not only impacts the region financially, but also It also aggravates the deficit of original spare parts, generating a proliferation of products of lower quality and of dubious origin.
Currently, only 5% of used auto parts manage to re-enter the market, the same sources calculate. This recycling shortage adds to the lack of transparency in the costs and quality of spare parts, as well as the absence of a reliable channel that connects dismantlers with insurers, workshops and vehicle owners.
After analyzing in detail for a couple of years this entire complex panorama that crosses the automotive sector from various fronts in the main countries of the region, three Argentine entrepreneurs, Catriel Videla, Alejandro Quatrochi and Federico Repond, They understood that they could transform this multiple problem into an opportunity.
This led to the creation of the first marketplace specialized in recycled auto partswhich they called Recycle, with the underlying objective of promoting the circular economy and sustainability in a key sector, not only for Argentina, but for the entire region. “We realized that this situation was an opportunity,” Videla explained in a talk with Scope. “If we managed to structure a reliable and functional platform, we could attack several problems at the same time: high repair costs, informality in the sector and the environmental impact,” express.
Reciclo: the commitment towards a sustainable model
From its conception, the project involved an in-depth analysis of global trends in the circular economy and research trips to key markets such as Mexico and Brazil. “In Mexico we realized that the market had major problems with missing parts and expensive repairs due to the lack of a structured model,” commented Videla. “There we met key people like Paqui Casa Nueva, president of Interprotección, who helped us open the doors to develop an MVP (minimum viable product) in that market,” he added.
In Brazil, for their part, they identified a favorable context thanks to the Plan Move, that encourages sustainability through tax reductions for the circular economy. “Brazil is a challenging market but with enormous potential,” Repond highlighted. “There we linked up with Cubo, an incubator that allowed us to better understand the particularities of the market and connect with local investors.”
Based on this research, Reciklo established strategic alliances with leading companies in logistics and technologylike Coin -Despegar’s PSP- and Cubo. These synergies were fundamental to create a Robust and reliable platform that combines advanced technology and sustainability.
Business model and use of artificial intelligence to optimize processes
Reciklo’s business model is based on connect insurers, workshops and end consumers with certified dismantling yards, guaranteeing the traceability and quality of auto parts. To address the problem of informality, the platform It only works with preselected shipyards, such as Paternal Motor and NH, ensuring strict control of transactions.
“Today we have an integrated stock of 6,000 auto parts and we are in talks with new wreckers to expand the offer”Repond said. Additionally, Reciklo plans to incorporate Artificial Intelligence technology to optimize the identification of parts through image diagnostics, which allows a more agile and precise experience, both for insurers and workshops. “The idea is to automate processes that are carried out manually today, which not only reduces costs but also improves the user experience,” stood out.
Initial investment and billing projections
With a initial investment of US$240,000 and two years of development, Reciklo is already operational in Argentina and plans expand to Brazil and Mexico, markets that concentrate 80% of the Latin American vehicle fleet. The founders plan capture 10% of the Argentine market, which is equivalent to an annual turnover of US$200 million in the next three years, and aspire to achieve US$800 million throughout the region.
“We know that the road is not easy, but we have the support of data and an underserved market,” Videla assured, and emphasized that “the key will be to consolidate our alliances and continue developing technologies that make a difference.”
Beyond business: the positive impact of the circular economy
In addition to the economic aspect, Reciklo aims to position itself as an organization that generate a positive environmental and social impact. For every recycled piece that is introduced into the market, carbon emissions and the consumption of natural resources are reduced. “We are in talks with automakers like Toyota, who already have experience in circular economy models in Japan and want to replicate those processes in Brazil,” Repond explained.
“What we do transcends business. “We are talking about building a more sustainable future for the next generations,” concluded Videla, who is now 100% dedicated to Reciklo. With a market currently deserted of players and great opportunities ahead, Reciklo promises to revolutionize the auto parts sector in Latin America, leading the way towards a more inclusive and sustainable circular economy.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
