In a scenario marked by economic challenges and accelerated changes in consumer habits, delivery platforms are consolidating themselves as key players in daily life. In this interview, Franco Lena, General Manager of Rappi for Argentina and Uruguay, details how the company managed to overcome a year of marked decline in consumption with record levels of activity, thanks to the adoption of ultra-speed, the strategic use of artificial intelligence and a constant commitment to innovation. In addition, it delves into the transformative role of delivery drivers within the platform ecosystem, collaborations with the national government to promote labor inclusion and initiatives aimed at empowering Argentine entrepreneurs in the regional market.
Franco Lena (FL): It is true that Rappi’s expansion in Argentina has been very important and accelerated, but it is nothing compared to everything we can and are going to do. In short, we are still far from our true potential. We are a company that seeks to give time back to users but also has a very significant impact on local economies. Our model helps generate income for hundreds of thousands of people in a flexible and autonomous way, and enables tens of thousands of businesses – large chains, small neighborhood restaurants, supermarkets or SME businesses that represent 80% of the businesses in the application — increase your sales. What motivates us is the social impact. Rappi is not just a technology company, but a tool that drives economic development. In fact, according to an IDB study, platforms like ours generate almost 2% of Argentina’s income. And despite everything, we feel like we are just getting started. For example, the penetration of e-commerce in Latin America within the total consumer market is barely 2%, while in countries like England it is 16% and in Asia it reaches 40%. YesIf we do things well, and even if we make mistakes, there is enormous room to grow and benefit more people.
FL: It is true that this year was very challenging for the economy, with a sharp drop in consumption. However, at Rappi we achieved record levels of business volume in Argentina, we closed the best November for our platform since it arrived in the country in 2019, including the pandemic.. This is due to three factors: First, the increasing adoption of apps, especially among younger generations. Secondthe success of our ultra-speed verticals, such as Turbo Market or Turbo restaurants, which offer deliveries in just 10 minutes, which is key for users with little time. And third, the intensive use of artificial intelligence, which allows us to design hyper-personalized promotions according to the consumption habits of each client. For example, someone who prefers fast food will receive different promotions than someone who orders more elaborate dishes, such as sushi or meat. In addition, we have worked to make our prices competitive with those of supermarkets and physical restaurants. In a context of high price sensitivity, offering constant promotions, such as lunches for less than $5,000, helps us be relevant to users. ANDNext year we believe that the macroeconomy will be with us, especially in sectors such as gastronomy, which was hit hard this last year. In addition, we plan a significant geographic expansion, going from 50 to 85 cities in Argentina, tripling the number of Turbo supermarkets and quintupling the number of restaurants with Turbo technology. All this, combined with strategies such as the personalization of promotions through artificial intelligence, allows us to project growth of more than 50% compared to this year.
Q: You mentioned the use of artificial intelligence. How are you using these tools and why are they important to the platform?
FL: Artificial intelligence is central to our operation. On the one hand, it allows us to personalize promotions with previously unthinkable precision, which makes our model more efficient. In the future, AI will be even more important. We are working to make the app more intuitive and predictive. We want to stay ahead of what people need, both in the search engine and in promotions. BesidesAI helps us improve order allocation, optimizing delivery times and predicting demand in different areas. This not only improves the user experience, but also makes the work of delivery drivers and restaurants more efficient.
Q: How do you analyze the role of delivery people in this model and their evolution over time?
FL: Delivery drivers are fundamental to our model. One of the aspects most valued by them is flexibility: they can work the hours and days they want, without penalties. This scheme is ideal for those seeking secondary income or who need to adjust their work to other responsibilities, such as caring for their children or studying. 80% of our delivery drivers have Rappi as a secondary job. On the other hand, the role has become very professional. At first, there were more incidents, but today the meritocracy system rewards those who provide better service. This benefits not only delivery drivers, but also users and businesses.
Q.: This year you worked with the government on very relevant initiatives. What do they consist of and what impact do they expect?
FL: We are collaborating on two major fronts. With Human Capital, we offer scholarships in digital schools for beneficiaries of the Empower Work plan, helping them train in technological trades. Meanwhile, they can generate income as delivery drivers, which facilitates their reintegration into the workforce. At the same time, with the Foreign Ministry, we launched a contest for Argentine entrepreneurs who want to internationalize their products or services. For example, products that perform well in the Turbo supermarkets in Argentina could be brought to the other eight countries where we operate. In addition, we are connecting Argentine gastronomy brands with investors from countries such as Colombia, Mexico and Brazil, helping them expand regionally.
Q.: How has the reception of the Empower Work plan been by the beneficiaries?
FL: The response has been very positive. Delivery drivers find in Rappi a flexible, legitimized activity with good income in just a few hours. This allows them to support their families while training for other job opportunities. It is a model that has immediate impact and, at the same time, enhances long-term development. The reality is that Rappi’s number one mission is to lift millions of people out of poverty in Latin America and that answers the reason for these initiatives and many others to come.
Q: How do you analyze the environment for doing business in Argentina and the direction of economic policies?
FL: The reality is that if we want to build a prosperous country for the next 100 years, we should not expect things to get better too quickly, because what gets better too fast gets worse just the same. The important thing moving forward for companies is to have clear rules. This will encourage people abroad to invest in Argentina. But cI believe that we have to focus on step by step, each one in his own space of influence, try to give our best, to do things well, not to take shortcuts, to take the long path, the one that holds up.. And I think we are on that path. Today we are seeing that activity is moving a little more and hopefully it will be the beginning of many years of growth.
Q: How is the Uruguayan market working?
FL: Uruguay is a country with a very developed delivery marketlargely thanks to the previous work of competitors. However, we see that there is room for consumers to have more alternatives. For years we were present and now we have reinforced our local team with a general manager, a more solid commercial structure, and we opened three Turbo stores in alliance with Devoto, a very recognized supermarket in Uruguay. We are convinced that our development will benefit everyone: users will have ultra-speed service in supermarkets and restaurants, local businesses will be able to increase their sales, and delivery drivers will have more income opportunities. We know that competition legitimizes the industry and helps more people adopt the use of applications.
Q.: In closing, what advice would you give to a young entrepreneur?
FL: The first thing is to understand that everything has a cost. If you want to be successful in your career or business, you need to be honest with yourself about what you are willing to sacrifice. This involves many hours of work, dedicated nights and weekends, leaving aside personal activities. Secondly, effort and perseverance are essential; Nothing is achieved overnight. Besides, It is key to trust yourself and fall in love with the process, not the result. Don’t look for quick results. And finally, focus on adding value to others: your customers, colleagues and community. This always comes back in one form or another.
Source: Ambito
I am Pierce Boyd, a driven and ambitious professional working in the news industry. I have been writing for 24 Hours Worlds for over five years, specializing in sports section coverage. During my tenure at the publication, I have built an impressive portfolio of articles that has earned me a reputation as an experienced journalist and content creator.
