Rappi Announces US$ 110 Million Investment in Mexico

Rappi has announced a US$110 million investment plan to improve the online shopping and delivery experience within its application, with the goal of fostering growth in Mexico and solidifying its market position. As part of this initiative, the company seeks to consolidate and expand its Turbo service to a greater number of commercial establishments including restaurants and pharmacies.

The capital injection will serve to expand Rappi’s operational coverage, which is currently present in 110 cities throughout the country. Through this expansion, Rappi aims to consolidate its market position as a leader in the ultra-fast delivery market in Mexico, the first delivery company to implement this model. 

The company’s capacity to realize its objectives is supported by a positive Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) statement, which evidences the profitability and efficiency of the company's operations in the country. This milestone, according to the company, marks a turning point for the platform, positioning it for more aggressive expansion and an even more dominant presence in Mexican cities.

"Being EBITDA positive is a significant milestone for Rappi. This will allow us to reinvest in the market, expand[] our services to more regions in Mexico, and strengthen our offerings for users, merchants and delivery companies," said Simon Borrero, Founder, Rappi.

This includes strengthening the adoption of Turbo, a service poised to revolutionize the concept of home delivery by offering products in a maximum of 10 minutes. The scope of this service will extend beyond food and grocery products to include Turbo Farmacias, establishing Rappi as a versatile platform capable of covering a wide range of consumer needs, thereby enhancing its competitive edge. So far, the adoption of Turbo by well-known restaurants has resulted in a notable increase in sales for the delivery app, resulting in the fastest growing vertical within the company according to a statement from Rappi. 

"We have also taken this technology to restaurants and of course this is all managed through the favorite restaurant brands that you find in the app. What we are placing is technology at their service and we hope that each time we can continue to expand much more through users," Ivan Cadavid, CEO, Rappi Mexico. 

Rappi's investment in Mexico is not only part of its expansion plans, but is also intended to provoke a positive impact on the local economy and society. Currently, the platform represents revenues of US$1.1 billion through more than 30 million downloads. In addition, with a presence in 9 countries and 350 cities in Latin America, Rappi has emerged as a pivotal growth catalyst for small businesses and a substantial revenue driver for its partners, along with providing livelihoods for over 350,000 registered delivery drivers.