The mobility app born in the Russian Arctic Circle is growing rapidly in Latin America, where it already operates in 17 countries, allowing drivers and passengers to negotiate a fair price for each trip. Its creator spoke with AméricaEconomía about its expansion plans and why technology companies should have a social purpose.
Just as Tesla is Elon Musk, Amazon is Jeff Bezos or Microsoft is Bill Gates, Arsen Tomsky represents the values of his company inDrive and is its visible face, both in California and Nigeria, for thousands of drivers and passengers globally who use his mobility app .
An app that, unlike Uber or Cabify, does not charge a percentage to the driver, but rather works on a weekly quota for using the application. This allows the app to then agree on the rates for each trip with its future clients.
To feed the myth, the firm produced this year a nearly hour-long documentary about the beginnings of inDrive, up to its international launch, named after its platform, and, more recently, a book – titled Inner Drive: From Underrated Company to Global Enterprise – where it tells the same story, and which the consulting firm McKinsey & Company recommended as one of the summer readings.
“We wanted to encourage people to reflect on the importance of having a deep meaning in our work, actions, and efforts. To consider how that meaning affects our level of happiness and allows us to reach the highest peaks, regardless of the difficult initial conditions. To talk about the ways of modern capitalism and whether it is too materialistic, and whether this leads to greater risks for influential mega-companies that focus on making money,” explains the founder of inDrive to AmericaEconomia , regarding both projects.
Arsen Tomsky has the profile of a self-made entrepreneur, born into a family of scientists, but with a personal story very different from the collective imagination of a startup that emerged from a Stanford accelerator or a Silicon Valley garage , since he was born and raised in Yakutsk, in the Sakha Republic in the former USSR and which is today the Russian Arctic Circle, in Eastern Siberia.
He was introduced to the world of robotics and computing at a young age and began his entrepreneurial career with the internet firm Sinet Group in 1999, where he was CEO for 20 years.
But starting a business in that area wasn't just a matter of having a good idea, it was about surviving the harsh realities of one of the coldest places on Earth.
“Bureaucracy was difficult to navigate and finding investors willing to take a risk on a Siberian startup was nearly impossible. However, these challenges taught me resilience and creativity. They forced me to think innovatively and persistently, which ultimately shaped my approach to building inDrive into a global company,” says Tomsky.
The CEO says that the value proposition and business model of his app is based on all transactions being transparent; that is, a negotiation between users, without pre-established algorithms.
Thus, what was born in 2012 as a collective idea to find means of transport within their community during a time of extreme cold and fuel shortage, made the leap in 2016 to the rest of the world.
In early 2021, inDrive achieved unicorn status after closing a $150 million investment round with Insight Partners, General Catalyst and Bond Capital, which valued the company at $1.23 billion. For now, the company remains private and has no plans to go public, like other shared mobility companies.
LATIN JUMP
Its internationalization took the team to California. And it was not long before it made the leap to Latin countries, which it reached in 2018.
“From the very beginning, our business model was a success. The unique opportunity that our platform offered drivers to be entrepreneurs, to be their own bosses, was very attractive. People in Latin America are very warm and open-minded people who are not afraid to negotiate the price they consider fair, and that is why we have more and more new passengers interested in using our services,” Tomsky points out.
Today, the platform's popularity in the region is high. According to the web download analysis firm data.ai, it is the most downloaded mobility app in Colombia and Peru for the second consecutive year, the second in Chile, and it is among the top three shared mobility apps in other countries in the region such as Mexico and Brazil.
The founder believes that this continent has great growth potential, and although today its market share is around 51.88% of the gross revenue pie, with 27.64% of trips completed.
“We are currently in 17 countries in the region, including the Caribbean. There are very few countries that do not have our services. However, we continue to grow to reach all those small and medium-sized cities where access to transportation is not so available and technology can transform lives and empower communities,” he explains.
Tomsky highlights that his firm has a strong understanding and sensitivity for the local market, noting that the main lesson from its six years of operation in the region has been that it is a region of entrepreneurs seeking the best opportunities.
“They are also very resilient people, always willing to dialogue and negotiate for what they consider fair,” he adds.
The third player in the equation of this business are local governments, which have shown an impetus to regulate apps . Tomsky indicates that his platform considers such regulation necessary, to guarantee its operation, as long as they consider the freedom of citizens to choose transportation options and contemplate the protection of the economic income of people who work on digital platforms.
“We are convinced that a balanced regulatory framework will respond to the realities of the technology industry, specifically in the field of urban mobility. That is why, at inDrive, we are committed to building bridges of understanding that will allow us to achieve a fair and equitable scenario,” he adds.
As for the future of the business, which has already left disruption behind and has become integrated into the economy of many people, the CEO of inDrive is betting on a future with fewer applications, but with more complete super applications, where the integration of multiple mobility services in a single application can take place.
“This could provide a seamless user experience and simplify access to various modes of transport,” he muses.
“In regions like Latin America, localized applications tailored to the specific needs of a city or country can thrive. These applications would be tailored to local transportation infrastructure, cultural preferences, and regulatory environments.”
Any future will also need to incorporate advanced technologies such as AI for route optimization, predictive vehicle maintenance, personalized user experiences and dynamic pricing models.
“With people’s expectations rising, more customer-centric and security-conscious apps will gain larger market shares and achieve great success everywhere, including in Latin America,” Tomsky said.
AI AND ELECTRIC TAXIS
Today, inDrive is not just about ride hailing . For years, the app has been offering multiple, fair options for different services. From mobility, home services to financial services, users can find everything in one app .
In August 2020, they launched inDrive Delivery in response to the COVID-19 pandemic and it has been actively growing, with the global expansion of the service in full swing with over 200,000 businesses served in around 40 countries. This solution allows users, entrepreneurs and small businesses to send or receive packages weighing up to 20 kilos.
The spin-off continues with inDrive.Freight, which according to the platform already had more than 250,000 commercial customers by the end of 2023. This solution is aimed at small and medium-sized businesses, such as furniture and production stores, agriculture, small industrial companies, logistics and distribution centres.
Meanwhile, inDrive City to City offers a fast and easy way to travel between cities at a fair price. The service uses the same “set your own price” model, where customers can suggest their own price and negotiate it directly with drivers “so it’s clear and a bit more customer-oriented.”
And this year, inDrive Money launched in Mexico with loans and credit cards for drivers in collaboration with established financial institutions.
“The credit card is ready to be expanded to other cities in the country after an initial analysis phase. Financial services are integrated within the app, allowing for seamless loan repayment directly from drivers’ earnings, with a commitment to avoiding excessive leverage through responsible lending practices,” Tomsky notes.
While its core business is being enhanced by the increase in the fleet of electric vehicles, the strategy will begin by improving the data analysis system of registered electric car drivers by tracking electric vehicles, making them visible to passengers, and organizing local associations to support drivers of such cars.
Additionally, they declare a strong investment in AI and machine learning technology to provide personalized experiences, both in Latin America and in various latitudes where they maintain operations.
“In Chile, we will inform drivers of the app about initiatives such as the Mitaxielectric program led by the Chilean Ministry of Energy and the Energy Sustainability Agency, which seeks to promote electromobility in the light transport segment through the replacement of internal combustion vehicles with 100% electric technology. And in Egypt we announced a collaboration with Natural Gas Vehicles Company (CARGAS), a company focused on reducing air pollution and generating a positive impact on the environment, advocating for the use of natural gas vehicles,” cites the CEO of InDrive as examples.
In parallel, the platform highlights its ongoing work to ensure the safety of drivers and passengers, through close collaboration with authorities, establishing security functions that allow users to quickly contact the assistance service, call the police or an ambulance in case of emergency.
“In addition to collaborating with the authorities, we work internally on a series of security tools and filters to ensure that these types of cases do not happen easily. For example, we have a rigorous verification of drivers, which requires that anyone who wants to provide services on our platform provide mandatory documentation and photographs for verification,” says Tomsky.
Today, Tomsky brands his firm as a community-driven platform dedicated to equity, empowerment and social responsibility.
“While inDrive operates as a for-profit entity, our founding principle is to provide fair and transparent services. While profitability is essential, our growth strategy prioritizes sustainability and ethical practices. Our local sensitivity ensures that our impact is positive and tailored to community needs rather than driven solely by global profitability,” he explains.
