With the help of artificial intelligence, the Colombian delivery multinational is making an ambitious commitment to this vertical. Today, it presented an update to its platform that includes elements of social interaction.
“2024 has been the year of Turbo for Rappi.” This is how Spencer Friedman, CEO of Rappi in Peru and Ecuador , describes the accelerated evolution that the vertical of ultra-fast deliveries (in less than 10 minutes) has had in the quick -commerce app .
For the executive, the potential of this service is enormous and that is why they are betting big to consolidate Turbo regular (delivery of high-demand products, such as food and other basic necessities) and Turbo Restaurants. According to Friedman, Turbo regular has been growing 40% annually with the same number of Turbo stores that operate as dark stores . In Lima, Rappi already has 20 stores and recently opened one in Punta Hermosa to supply the south of Lima during the summer season.
At the same time, the Colombian delivery multinational has been expanding the number of products available in Turbo stores in response to growing user demand, which has prompted it to leverage technologies such as artificial intelligence to control its supply chain.
In that sense, the acquisition of Fountain9, an artificial intelligence company based in India that specializes in supply chain and demand forecasting, is a great match for the company. “This helps us a lot in several areas, but in particular for Turbo, because it allows us to streamline processes, interpret when demand will arrive, what type of products and orders we have to make to our supply chain, and it will create very interesting efficiency. It is interesting to see this merger between the Latin American market and an Indian market that connects through this technology. We will be able to predict needs and control our inventory much better through artificial intelligence,” says the CEO of Rappi in Peru and Ecuador.
To date, Rappi Turbo's average delivery time in Lima is 8.2 minutes, and with the acquisition of Fountain9, it will make intelligent routing more efficient , allowing it to maintain its value promise since with technology it will be able to choose the right products, expand the number of products, as well as the size and reach of its stores. “It's one thing to deliver quickly, but with Turbo, it's ultra-fast deliveries, 10 minutes or less. There's nothing like that anywhere else on the planet, not in the United States, Europe, or Asia. The fundamental thing is that as we grow, we always have to be reaching that goal of 10 minutes or less,” says Friedman.
Future acquisitions could also become a reality. “At Rappi, we are always looking at the best of the best and seeing how we can work together with the best companies through alliances or acquisitions. It is impressive how we can join forces with another leader in the technology space and generate that positive synergy,” says Spencer Friedman.
Turbo's commitment also aims at integrating other business verticals. "There is a great need for fast delivery in various things, such as pet food or medicine. The technology is quite versatile and we are using the same platform. It is a matter of adapting the partners so that they understand how [Turbo] works and commit to the value promise because it is a joint effort. The partner has five minutes to prepare the order and we have five minutes to deliver it within the shortened radius," Friedman points out.
Along these lines, he highlights the good performance of Turbo Restaurants, which already has more than 220 affiliated brands and approximately 300 physical stores. “We are exploring other verticals and the goal for the company is that in the coming years 40% of our total sales come from Turbo, whether regular Turbo, Turbo Restaurants or Turbo in some other vertical,” he says.
The New Rappi
In line with its technological commitment, this morning Rappi presented “The New Rappi”, an update to the platform that combines technology, social interaction and functionalities designed to transform the user experience. This update will be available before December 24 and is “the biggest renovation of the application since its foundation in 2015,” according to the Colombian unicorn.
“Over time, we have understood that Rappi is not only about convenience, but also about connection. That is why we believe that integrating these new components is a natural need for users in the current moment we live in,” said Felipe Villamarin, Co-Founder of Rappi, during the presentation. “We are uniting social discovery and AI with fast and easy delivery, creating a platform that not only brings you what you need, but inspires you and connects you with the people and experiences you like.”
