inDrive: Breaking the Underdog Myth in LATAM's Entrepreneurship

Q: How does New Ventures address the challenges faced by early-stage companies in emerging markets while driving growth and strategic opportunities for inDrive?

A: inDrive operates across 40 markets, has over 360 million downloads, and has completed over 7 billion trips globally. This extensive reach provides the core ride-hailing business with a huge audience. My role, which started two years ago, is to help our users also consume and gain fair access to other services. This creates a clear alignment of interest: we can build new businesses, like delivery, food, or financial services, or we can partner with, invest in, or acquire smaller companies. 

As a former entrepreneur born in South Africa, I recognize the capital dysfunctions common in emerging markets, where there is a lack of early-stage investment and successful exits. A healthy venture capital market relies on a cycle where entrepreneurs sell their companies for millions of dollars and then become future seed investors, but this cycle faces obstacles in markets like South Africa, Pakistan, Colombia, and Peru due to the absence of big exits. When we started New Ventures inside inDrive, we viewed this capital gap as an injustice. We saw incredible entrepreneurial talent in young markets like Mexico, where something like 60% of the population is under 35 years of age, creating a large, digital-native consumer base. The purpose of New Ventures, therefore, was to help rectify this by investing in small, up-and-coming businesses that need capital. 

As a strategic investor, inDrive offers more than just capital; we provide companies with access to our massive customer base. A clear example of this is our recent investment in and later acquisition of grocery businesses in Kazakhstan and Pakistan, where we integrated them into the inDrive user base, leading to a significant increase in their growth. The overall strategy is to address the lack of capital and market access by investing in, acquiring, and integrating promising local companies into inDrive’s platform. By providing customer reach, operational support, and scale, we accelerate companies’ growth, create exit opportunities for founders, and contribute to the development of a healthier venture ecosystem in emerging markets while expanding inDrive’s service offering and strengthening user engagement.

Q: What strengths does the New Ventures team identify in evaluating Latin American startups for investment?

A: The entrepreneurs we encounter in Latin America and other emerging markets demonstrate an exceptional level of grit and perseverance. They do not give up easily and are not afraid of problems. In contrast, and I say this with respect, founders in more developed regions, such as Europe, are often used to stability and predictability. When challenges arise, they may come as a surprise. 

Another notable strength, particularly in Latin America, is the collaborative mindset. Entrepreneurs here tend to value partnerships, community, and open communication. In Europe or certain Central Asian markets, there is sometimes a preference for working independently rather than building alliances. In Latin America, the natural inclination toward deal-making and cooperation strengthens the entrepreneurial ecosystem, and I believe this should continue to be encouraged.

We are now seeing successful founders in Latin America reinvesting in their ecosystems as they begin to achieve significant exits. In countries such as Brazil, Colombia, and Peru, this reinvestment is becoming more visible, driven by a sense of patriotism and commitment to supporting the next generation of entrepreneurs.

Finally, there is what I call the “underdog anomaly.” At inDrive, we come from an unlikely background. We were not the first movers in our market, and many believed our success was impossible because the market was already established. Yet we have become the second most downloaded mobility application worldwide. This reflects the strength of an underdog mentality. We are not afraid to start from behind, to challenge established players, or to operate with a lower sense of ego. Humility and resilience, in my view, are powerful assets for entrepreneurs in emerging markets like Latin America.

Q: What do entrepreneurs in emerging markets need to succeed, and what challenges do they face?

A: The most important thing is that we need to help entrepreneurs take more risks. The most fertile environments for venture capital are those where there is access to capital and a society that actively supports entrepreneurs. In these environments, failure is not stigmatized; it is celebrated as part of the learning process. Experienced entrepreneurs who have failed before are recognized for their knowledge and ability to avoid repeating mistakes.

We have seen this dynamic in Silicon Valley, and more recently in Brazil, India, and the United Kingdom during the mid-2000s to 2015, particularly in the fintech sector. A successful entrepreneurial ecosystem requires all players to participate: capital providers, entrepreneurs, and supporting institutions.

Secondly, educational systems must support entrepreneurship. Schools should communicate that students can pursue careers as professionals or entrepreneurs, creating a level playing field. Growing up in South Africa, I was constantly told to become a doctor, lawyer, or accountant. While this advice stems from a desire to provide a stable future, it limits opportunities. Emerging-market societies have not yet evolved sufficiently to normalize entrepreneurship as a viable path alongside traditional careers.

Thirdly, market size plays a critical role. Entrepreneurs in emerging markets often face constraints due to smaller local markets, which can limit growth potential. In larger markets, even capturing a niche can result in a substantial business, whereas smaller markets require greater creativity and effort to scale successfully.

Q: How does inDrive define a Super App and how does it translate into value for the Mexican market, especially as this market is not used to the super app concept, as are other markets like China?

A: To provide context, the United States pioneered the browser era of the internet, from the mid-1990s to the mid-2000s, during the dot-com boom. A generation in the United States grew up with browsers and desktops, followed by applications, leading to a natural adoption progression.

China, on the other hand, largely skipped the browser era and went directly into applications. This gave rise to platforms such as WeChat and Alibaba, which integrated multiple services into a single application, creating the Super App concept. For example, the average WeChat user spends 4.5 hours a day on the platform, engaging in communication, transactions, commerce, and work. This level of engagement stems from the consolidation of multiple daily activities in one application.

Our thesis at inDrive focuses on emerging markets, which we call inDrive markets. These include Mexico, Peru, Colombia, Kazakhstan, and Pakistan. They are large, young, digital-native populations, accustomed to applications rather than traditional infrastructures. Many young households do not prioritize driving because they can access services with a click. Dual-income families rely on delivery for food and essentials due to busy schedules, reflecting a new way of living.

The inDrive Super App is centered on daily essentials, starting with mobility. Mobility is fundamental because high-frequency daily activities, such as commuting, communicating, transacting, and earning, drive engagement. Our goal is to provide a single platform where users can access all daily essentials.

Our core expertise remains mobility; we excel at moving people, goods, and services. For other products and services, we do not need to build everything ourselves; we can partner with, invest in, or acquire companies. Step by step, we aim to expand the range of services on the platform. Data shows that the more verticals a user consumes within our ecosystem, the higher their retention, engagement, and spending, reinforcing the value of a multi-vertical approach.

Q: How can the concept of a Super App be further promoted in a market like Mexico? 

A: I do not subscribe to the notion that there is a single super app blueprint that can be applied everywhere. inDrive operates in 990 cities worldwide, and one of the biggest lessons I have learned is that every city is different. People move differently, eat differently, and behave differently.

What distinguishes this new AI-driven super app era is the opportunity to set an entirely new highly localized trend. Each city can have a unique version of the app. We are building the super app in a modular way, allowing us to tailor services to specific markets. For example, if we identify a strong opportunity for food delivery in Mexico City, we will develop it here, but that does not mean we will replicate it everywhere else.

This flexibility is possible because of advances in technology, data, and artificial intelligence (AI), as well as our deeper understanding of how users interact with platforms. Today, users are more open to sharing preferences and engaging with applications in a way that enables us to personalize their experience.

The second defining aspect is that inDrive is built on the principle of fairness. Our technology empowers users to make their own choices: the price they want to pay, the driver or courier they want to use, and how they wish to interact with the service. This human-centered approach is what differentiates us. We are not creating a standardized, all-controlling algorithmic platform. Instead, we are developing a flexible and participatory model that adapts to the needs of each city and its users.

Q: What makes inDrive’s strategy particularly effective in markets like Mexico and other emerging economies with sometimes restricted purchasing power?

A: This is not something unique to Mexico; it applies across many of our markets. By our internal estimates, we are around 10 times cheaper to operate than any other competitor. This efficiency allows us to focus on a segment of users who may not have the latest devices. Many use phones that are three or four generations old, which cannot support large, complex applications. Connectivity is often inconsistent, and users frequently need to delete files or applications to free up storage space. For this reason, we optimize for resilience rather than sophistication. Our priority is functionality. The app must work across all devices, screen sizes, and connection qualities. This also applies to our drivers, for whom system reliability is critical.

In Mexico and other similar markets, this approach resonates strongly with cost-conscious users who value transparency, control, and fairness. They want to know they are getting a good deal and that the platform operates on their side, not against them. Ensuring reliability and accessibility is central to maintaining that trust.

Q: How is inDrive planning to integrate its purpose of fairness into its strategy for consumers and entrepreneurs in Mexico?

A: For consumers, inDrive is building a super app centered on fairness in Mexico. Whenever we see lacking access, or people being denied equal opportunities to use the same products and services, our goal is to step in. Beyond a meaningful purpose, this is also a strong business model. When you give large groups of people affordable and transparent access to services they previously could not use, everyone benefits.

Every time someone says a market is impossible to enter because it is already taken, that excites me. It usually signals that some form of injustice exists, and that is exactly where we want to operate. We are here to promote fairness, transparency, and choice.

As for entrepreneurs, there is no reason why Mexico cannot become a global technology and entrepreneurship powerhouse. Through inDrive’s ventures and partnerships, we hope to contribute to that. For example, our Aurora program focuses on investing in female founders, and we have several new initiatives planned for next year. We hope to support entrepreneurs' journeys in any way we can.

Q: Could you share a project where inDrive’s purpose is reflected in the way it employs technology to fight inequality? 

A: We believe that AI should empower people, not the other way around. At inDrive, we use technology to support human decision-making, giving people the ability to make their own choices. One example of this approach is inDrive Money, a financial service that provides loans to drivers. Unexpected events like vehicle breakdowns, health emergencies, or family needs can occur, and many drivers do not have immediate access to traditional bank loans. About 14 months ago, we began testing inDrive Money in Mexico, and the results have been very positive.

So far, 45% of drivers who have taken a loan once have returned for another later on. One of the most innovative aspects of the program, pioneered in Mexico, is the option for drivers to repay loans through their earnings. They can repay in cash if they prefer, but many choose to drive back their loan as they continue working.

This model has now expanded to three other markets in Latin America within the past nine months, proving its scalability and relevance beyond Mexico. We are only beginning to explore the potential of financial services. Beyond drivers, passengers also face challenges that could be addressed through products like insurance, savings, or small loans.

Additionally, when drivers repay their loans, we report this information to credit bureaus, helping them build credit histories and eventually access larger loans from banks. This is part of our broader goal to create more equitable access to financial opportunities.

inDrive is a US-based mobility and urban services company with a wide variety of business verticals, such as city-to-city trips, freight, and delivery services. It also provides digital financial services in different markets.