Rappi

Rappi operates as a multi-service super-app in Latin America, headquartered in Bogotá, Colombia. The company was founded in 2015 by Simón Borrero, Sebastián Mejía, and Felipe Villamarín, who identified a gap in the on-demand delivery market for faster and more diverse product availability. The founders, all with backgrounds in technology and entrepreneurship, initially launched a platform called Grability, but pivoted to Rappi after user feedback revealed a demand for broader delivery services.

The company's core business is a three-sided marketplace connecting consumers, couriers (known as "Rappitenderos"), and a wide array of businesses, including restaurants, supermarkets, pharmacies, and retail stores. Rappi targets a diverse urban clientele, from time-constrained professionals and students to busy families who value the convenience of on-demand services. The platform's initial traction was famously boosted by a marketing campaign that offered free donuts to users who downloaded the app. Since its inception, Rappi has expanded its footprint to nine countries and over 400 cities, achieving over 150 million app downloads by May 2024.

Revenue generation for Rappi is multifaceted. A primary source of income is the commission, ranging from 15-25%, charged to partner merchants on orders processed through the platform. Customers pay a variable delivery fee based on factors like distance and demand. Another significant revenue stream is the Rappi Prime subscription service, which offers benefits like free deliveries for a recurring monthly fee and accounted for an estimated 10% of revenue in 2021. The company also monetizes through in-app advertising, allowing businesses to pay for premium placement and increased visibility.

Beyond its core delivery function, Rappi has diversified into several verticals. The "Rappi Antojo" (craving) feature allows users to order virtually anything, a key initial differentiator. The platform includes specialized services like Rappi Turbo for deliveries in under 15 minutes, and has expanded into e-commerce, travel, and fintech. A major strategic push has been into financial services with RappiPay and RappiCard, developed in partnership with local banks to serve the region's large unbanked population by offering digital wallets and credit cards.

Keywords: on-demand delivery, super-app, Latin America, marketplace, fintech, grocery delivery, restaurant delivery, e-commerce, subscription service, last-mile delivery