What is Rappi? Examine Business Model and Revenue Streams

What is Rappi? Examine Business Model and Revenue Streams


The sudden corona outbreak has left people with no option but to seek digital platforms to get their regular tasks done. Besides, online services also offer the utmost comfort to the users; as a result, on-demand apps are now quickly replacing the conventional business model. 

There are many on-demand apps for taxi booking, online food delivery, grocery services, housekeeping services, and more to help people. Now the question is, installing apps for all these regular tasks can be cumbersome as these apps consume more space and data. So how about providing all the services in a single app?

Yes, this is called a super app. The concept of a super app is not novel for Asian countries, but if we talk about the American market, it is totally new. Digitization is growing aggressively, and the term super app has gained lots of popularity. And Rappi is one of the leading multi-category apps in Latin and South America. It has more than 50 million downloads. So entrepreneurs globally are getting traction in the on-demand market by launching a platform like Rappi. 

A super app, Rappi provides multiple services on a single platform. So everything can be done using just one application, ranging from taxi booking to grocery ordering to making payments and booking tickets. Rappi has recently got huge funding from investors. And its year-by-year growth is inspiring more entrepreneurs to enter the same market. 

What is Rappi? Know Little Details About It 

Founded in Colombia in 2016, Rappi boasts a 30% monthly growth rate. A leading app for on-demand delivery in Latin America, its name, Fast, is derived from the Spanish word for fast. Full-service or “deliver-anything” apps help users locate products and services: from food delivery to groceries, clothes, and more.

In the past few years, Rappi’s Super App has seen tremendous growth, and it is now available in over 50 cities in seven countries. In light of its collaborations with other companies, Rappi has no doubts about its goals of becoming a world-class “super-app.”

  • Meanwhile, the Rappi app raised some eyebrows regarding its “versatility”; it offers e-scooter rentals through Grin and airline tickets through Voopter. Several major funding rounds have also contributed to Rappi’s success. 
  • As previously noted, SoftBank led a $1 billion Series E round in April. DST Global, Delivery Hero, Sequoia Capital, Andreessen Horowitz, and Y Combinator have all made previous investments.

Interesting Facts About Rappi

Rappi started with only food and online grocery delivery service, but today, the company has expanded its services and offers almost everything. From food to clothes to medicines to travel services and bike rental. If you are interested in building a solution like Rappi, we have shared some eye-appealing facts and figures for your reference. 

  • The app works with 50k various businesses.
  • Rappi’s current value is approx 3.5 billion dollars, and it raised funds of 1 billion dollars
  • Rappi has a crew of 25K delivery personnel that manage to get more than 30 orders per month.
  • If you want someone to withdraw cash from your bank account and deliver it to your doorstep securely and swiftly, Rappi is a trusted application to do the job. 

In short, Rappi has gained immense popularity in the American market and has become a unicorn of this digital era and this is the reason why entrepreneurs across the globe taking a keen interest in rappi’s business model as it inspired them to grab a small pie of the growing market in no time. So now, without any ado, let’s have a look at its business and revenue models. 

Rappi Business Model. Have a Look into Its Multiple Services

Rappi has a business strategy that combines multiple services delivered by multiple apps.

Food Delivery

Rappi began by investing in creating online meal delivery apps to provide food delivery services, which allowed the company to stay ahead of the competition. Previously, Rappi only offered one service: meal delivery.

Deliveries of groceries

Rappi’s main feature was grocery delivery, although there weren’t many supermarkets listed on the app. Slowly, it expanded its presence into new sectors and formed partnerships with major retail companies.

Errands 

Rappi allows users to complete any jobs using their app, from delivering a package to exchanging merchandise, and so on.

Online Payment Tranfers

Rappi allows users to send money from their bank accounts to others using credit cards or credits stored in the app’s digital wallet. RappiPay is simple to use, and there are no transaction fees if you send money through the bank. As a result, Rappi is becoming increasingly popular among users.

Micro-Mobility

In 2019, Rappi teamed up with Grin, a well-known scooter startup, to allow users to rent scooters using the app.

Rappi lets couriers earn every order and work as long as they want through the app. Rappi can also be used by those who do not have higher education for many reasons. Rappi’s couriers are self-employed and make money through tips and fees, so the company doesn’t have to pay for employee benefits.

Rappi Revenue Model. How Does It Make Money?

Commission:

Rappi is an internet retailer that ships things directly to customers. It collaborates with some stores, restaurants, and businesses to offer a wide range of products to customers. Rappi charges a small commission from restaurants and retail owners once the order is placed.

Customers:

Customers who are pleased with the speed of delivery or the availability of a product on the Rappi app frequently tip the delivery guys for their efforts. Rappi makes money from the deliveries in this way.

Marketing and Advertising:

A user is notified of suggested things from various stores from which he can order. Rappi charges the respective businesses money to display their product to the customer for such adverts.

Conclusion

The global doorstep delivery business is growing by leaps and bounds. Whether it is America, the UK, or Asia, the super app concept makes headlines. Rappi’s business model has proved its uniqueness and how the brand expands its services and fulfills the rising needs of the customers. As an entrepreneur, if you are looking for a business idea that makes you wealthy in no time, investing in a Rappi like platform could be one of the best decisions you can ever make. 

Principal Image: https://blog.rappi.com/rappi-corporativo/