Week in Review: TNC Cabify turns a profit, all-electric ridesharing fleet heads to Mexico, Colombian unicorn Rappi hit with big lawsuit
¡Buenos dias! As we close in on the exciting inaugural edition of CoMotion MIAMI – this April 2nd and 3rd – we wanted to showcase just how many exciting mobility and transportation developments are taking place across Latin America. For this special edition of CoMotion>>NEWS, we’re particularly focused on this vast, dynamic region and the vibrant cities of South and Central America, to give you an inside look at the mobility revolution happening down south. Highlights include Madrid-based Cabify becoming the first TNC to post a profit, big shake-ups across the South American logistics scene, DiDi Chuxing launching Latin America’s first all-electric rideshare fleet, Mexico investing billions of pesos into reforming its freight railroads, and Brazil looking to upgrade its infrastructure with the help of foreign companies.
Latin America is the most urbanized continent on our planet, with a rapidly growing population that’s in dire need of new and improved ways to move people and goods around their cities. There are all sorts of extraordinary hometown players with fascinating stories – whether Colombia’s Rappi rethinking food delivery or Mexico City’s Grin quietly transforming into a micromobility juggernaut – that are sadly underreported outsde Latin America. That’s also why CoMotion MIAMI this April is bringing together the best and brightest mobility minds from across the Americas, there’s much North Americans and Europeans can learn from friends in the Global South, and vice-versa. Best of all – today is your final day to secure tickets at a 50% discount. I do hope you’ll join us.
– John
A financial first: Cabify, Spain’s first unicorn startup, has reached profitability—which is significant as other, larger TNCs are still struggling to stop leaking red ink. Looks like a focus on Latin American markets, and extreme pricing discipline, has paid off.
Railway revamp: An injection of capital means Mexican railways are seeing extensive upgrades. Three railroad companies will invest $604.7 million into maintenance, increasing operational efficiency, track expansion, and diverting certain lines through less populous areas to deter freight theft. Increasing train speeds by 26% is also on the menu, meant to increase efficiency in transport times, which should result in continued growth for an already surging logistics sector.
Big bus boost: Mexico City is increasing capacity by 15% on its hugely popular Metrobús system, thanks to new bi-articulated buses and other upgrades. Beyond increasing capacity, the new fleet also promises an 80% reduction in particulate pollution. A big win for both commuters and their lungs, in a region known for autobús innovation.
Battle of Bogota: Uber is facing challenges in Colombia, with its drivers removed from Colombia’s roads after a new government ruling. While Uber Eats is still operational, other TNCs like DiDi, Beat and Cabify are quickly scooping up Uber’s stranded riders.
Tears of a Unicorn: along with the recent layoff of hundreds of employees, Rappi has been hit with a big lawsuit. Three Colombian businessmen are accusing Rappi of misappropriating trade secrets, saying the on-demand delivery company stole their core business idea. A probe has been launched in Columbia as well as a US District Court in California. This all comes on the heels of Rappi receiving an up to $1 billion investment from SoftBank. Sounds like The Social Network II…
Electric-fueled fleet: Latin America is about to get its first shared EV fleet. Didi Chuxing is set to launch the all-electric fleet through its ridesharing app in Mexico. With several new smart and sustainable urban mobility initiatives in the works, expect continued improvements for Mexican commuters and environmentalists.
Foreigners welcome: Brazil’s central government wants to open up bidding for infrastructure projects to foreign companies. Currently, any outside companies need to operate through a local subsidiary, which often lack the resources to complete major projects. Will increased competition bolster Brazil’s floundering economy or simply result in more angry local constituents?
Softbank’s South American startup skirmish: SoftBank’s deep pockets are sowing chaos in Latin America, as competing mobility and delivery services are burning cash to compete with one another. Perhaps funding Uber, Didi, AND home team champion Rappi wasn’t such a great idea?
Sports fans cause rail plans: Yet another example of a major sporting event spurring a city to expand its public transit: Panama has approved the construction of a 2km extension of its Panama Metro Line 2 to Tocumen Airport. With the Central American and Caribbean Sports Games being to be held locally in 2022, the expansion aims to finish in time to help handle the influx of sports fans.
Air Force Uno: Practicing the austerity he preaches, Mexico’s president has been trying to get rid of the presidential jet. After racking up over $1 million in maintenance fees while the jet sat for sale at a US airstrip, the president considered raffling off the jet in a lottery. His idea was met with memes and mockery such as “where would I park it?” The new plan involves a different sort of lottery, with the government selling tickets to a $100 million prize, and using said proceeds to keep the moribund Boeing airworthy.
Brazil’s big biking buildout: With skyrocketing obesity and increasing cycling deaths, the Mayor of Fortaleza, Brazil’s fifth largest municipality, dramatically increased the city’s cycling infrastructure from 68 kilometers of bike lanes to 263 kilometers. That put a bike lane within 300 meters of 40% of residences. Los Angeles and other North American cities, please take note.
Whatcha gonna do when they come for you? While many police departments are adding bike-mounted officers to their forces, the police department of Baja California’s Mexicali is taking things one step further, with the addition of 50 mph capable, high-powered ebikes to their fleet, achieving enormous efficiency and zero emissions, while providing speed, range, and terrain capabilities.
Grow shrinks: Micromobility’s growing pains seem to be spreading south of the border. Mexico-based Grow just announced it is laying off 25% of the company and exiting 14 Brazilian markets. On top of that, Grow’s bikes have been entirely taken off the streets, due to technical issues. Tough break in a tough market.
Blazing micromobility: Offering 60 km/hour, 60 km range, and a removable battery, the Brazilian electric motorcycle startup Voltz expands its Tesla-like showroom experience to Brazil’s largest city, São Paulo. Where do we sign up for a test ride??
SupplyChainBrain, touching on how trucking apps could help lead Latin America to a logistics revolution.
Latin America Reports, letting us know what’s driving global tech companies to Latin America.
BNamericas, highlighting the future of electric vehicles in the Southern Cone.
World Economic Forum, positing that while Latin America is a mass-transit powerhouse, it’s in need of some fine-tuning.
CitiesToday, showing La Paz, Bolivia’s unique mobility solution: city-spanning ropeways.
Dallas Observer, looking slightly closer to home, suggesting a complete overhaul of Dallas’ floundering light-rail network.
Curbed, explaining that as sea level rises, Miami’s inland neighborhoods are experiencing a rising tide of gentrification.
Startups & Corporate
VP, Engineering | Truckola | Mumbai, India
Chief of Staff | Swoop Aero | Melbourne, Australia
Central Operations Manager, Rentals | Lyft | San Francisco, CA
Senior Buyer | SpaceX | Hawthorne, CA
Driver Acquisition Principal | Via Transportation | New York, NY
Tech savvy Customer Service | Goin | Everett, WA
Senior Recruiter, Corporate | Spin | San Francisco, CA
Civic & Nonprofit
Transit Supervisor | Wilsonville Tranist | Wilsonville, OR
Senior Transportation Engineer | Engineering & Transportation Department | San Leandro, CA
Transportation Equity Research Consultant | Congressional Black Caucus Foundation, Inc | Washington, DC
Have a job listing that’s perfect for the CoMotion community? Please send it to Jim Manning.
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Header image courtesy Rappi