Rappi is a platform that allows users to order virtually any product and have it delivered to their door in select Latin American countries. Additionally, Rappi utilizes its courier network to complete small task for customers such as wait in line for product or service. I would categorize Rappi as UberEats, Instacart, and TaskRabbit combined. Rappi, colloquial for fast, operates in Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Uruguay. Rappi has achieved series D funding and raised $392 in Venture Capital sinces its founding in 2015. Rappi is reported to have reached Unicorn status, a valuation of over on billion US dollars, as of August 2018.<\/p>\n
Interesting platform offerings:
\nEverything on demand.
\nPrime delivery.
\nDelivery fleet.<\/p>\n
Unlike other platforms such as UberEats or DoorDash where individual merchants have to opt in to a given platform, Rappi allows users to order virtually anything from their platform by simply messaging instructions to a courier. I find this feature to be innovative because it allows the platform to focus on its core competency of delivery as a service instead of having to strike deals with merchants. Additionally, this model allows merchants to avoid commissions charged by other delivery platforms.<\/p>\n
By ripping a page from the Amazon playbook, Rappi introduced a monthly subscription service for free delivery. I find the free delivery model to take the friction out of online orders for some consumers. Rappi\u2019s prime delivery subscription allows customers to pay for their prime membership on an annual or monthly basis. Customers who sign up for prime and protected from nighttime and inclement weather surcharges. I find Rappi\u2019s prime payment model to be innovative as it makes its delivery service more accessible to<\/p>\n
In the same way that DoorDash and other platforms leverage on contract gig employees, so does Rappi. However, Rappi only contracts with bicycle and motorcycle delivery drivers. A two wheel delivery fleet allows Rappi to keep delivery fees low and provides faster delivery speeds in congested cities in Latin America (LATAM).<\/p>\n
Walmart\u2019s recent acquisition of Cornershop, a grocery and pharmacy deliver platform, can be seen as a positive signal of the delivery ecosystem in LATAM. Additionally, Walmart has rolled out a conversational commerce app, Jetblack, in New York City that allows customers to order virtually anything via text message. Jetblack\u2019s service is priced at $50 per month. I assess that Jetblack\u2019s price point shows that Rappi has room for increasing their Prime pricing. Much in the same way that Amazon increase its prime service from $99 to $119 in May of 2018, Rappi may be able to extract more revenue from its membership subscription service.<\/p>\n
Rappi has created a third party logistics platform for virtually any business. This value creation is a win-win for Rappi and its partners are partners see increased sales and Rappi captures delivery fees. Additionally, Rappi has created a new marketing channel for brands to run promotions on the Rappi app. Rappi\u2019s marketing potential is allows for firms to run promotions on its online marketplace while at the same time allows its delivery fleet to offer customers sample products.<\/p>\n
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References: <\/span><\/p>\n <\/p>\n [1] Rappi. (n.d.). Retrieved February 23, 2019, from <\/span>https:\/\/www.crunchbase.com\/organization\/rappi<\/span><\/a><\/p>\n <\/p>\n [2] Rappi raises $200M as Latin American tech investment reaches new highs | TechCrunch. (n.d.). Retrieved February 23, 2019, from <\/span>https:\/\/techcrunch.com\/2018\/08\/31\/rappi-raises-200m-as-latin-american-tech-investment-reaches-new-highs\/<\/span><\/a><\/p>\n [3] Rappi 24\/7. (n.d.). Retrieved February 23, 2019, from <\/span>https:\/\/www.rappi.com.mx\/prime<\/span><\/a><\/p>\n <\/p>\n [4] Walmart to acquire Mexico & Chile-focused grocery delivery service Cornershop for $225M | TechCrunch. (n.d.). Retrieved February 23, 2019, from <\/span>https:\/\/techcrunch.com\/2018\/09\/13\/walmart-to-acquire-mexico-chile-focused-grocery-delivery-service-cornershop-for-225m\/<\/span><\/a><\/p>\n <\/p>\n [5] Text to order: Walmart rolls out Jetblack, a members-only service. (n.d.-a). Retrieved February 23, 2019, from <\/span>https:\/\/www.cnbc.com\/2018\/05\/31\/text-to-order-walmart-rolls-out-jetblack-a-members-only-service.html<\/span><\/a><\/p>\n [6] Amazon Prime fee is increasing from $99 to $119 – Recode. (n.d.). Retrieved February 23, 2019, from <\/span>https:\/\/www.recode.net\/2018\/4\/26\/17287476\/amazon-prime-new-price-increase-119-99-dollars<\/span><\/a><\/p>\n