✦Crazy Wisdom

Crazy Wisdom

The Argentine Advantage: Thriving in a World of Uncertainty

November 21, 2023 · 54 min

MP3 · Apple Podcasts · Spotify

About this episode

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This in-depth conversation provides invaluable insights into running a tech startup in Argentina. Former Rappi executive, Lucas Assad, discusses the challenges faced by businesses in an unpredictable economy marked by hyperinflation and rapid changes in exchange rates. Using his experiences in managing Rappi and his present venture dealing with imported construction materials, Lucas explains the complexities of Argentina's entrepreneurial ecosystem. One must be street-smart and agile, adept at handling the unpredictable. Equally, there's a resilience brought out in entrepreneurs dealing with these trying conditions. This podcast also takes a detour, analyzing the complexities of the food delivery business, the competition, and unrest in the marketplace, especially in comparison to the USA.

00:02 Introduction and Guest Background 01:11 Discussing Entrepreneurship in Argentina 06:25 Impact of Government Policies on Business 07:51 Exploring Successful Latin American Startups 12:01 Challenges and Opportunities in Argentine Business Environment 19:59 Effects of Currency Devaluation on Business 24:20 Impact of Rappi on Argentine Market 29:33 Unexpected Encounter and Introduction to Rappi 29:58 Expansion of Rappi in Latin America 31:55 Competition in the Food Delivery Market 33:17 Challenges in the Food Delivery Business 33:30 The Importance of Perfect Delivery 34:33 Balancing Supply and Demand in Food Delivery 35:10 The Role of Restaurants in the Delivery Ecosystem 36:08 The Financial Aspects of Food Delivery 44:17 The Impact of the Pandemic on Food Delivery 45:34 The Future of Food Delivery Businesses 50:27 Transition from Tech to Construction

Key Discussion Points

  1. Background and Introduction

    • Lucas Assad, a friend of Nico (previously interviewed), is an entrepreneur with experience in both traditional business and the tech startup world. He transitioned from the pharmaceutical industry to tech startups, playing a significant role in Rappi's expansion in Argentina.

  2. Entrepreneurship in Argentina

    • Discussion on the unique challenges and opportunities in Argentina due to political and economic instability. Examples include hyperinflation and rapidly changing laws.
    • The concept of being "street smart" (DNA in Spanish) in Argentina, highlighting the need for agility and adaptation in business.

  3. MercadoLibre and Rappi

    • Insights into successful Latin American startups like MercadoLibre and Rappi.
    • The impact of these platforms on daily life and the economy.
    • Differences between MercadoLibre's evolution and Rappi's rapid expansion.

  4. Challenges of Food Delivery Business

    • Exploring the operational difficulties of running a food delivery service like Rappi.
    • The importance of balancing supply and demand, and maintaining customer satisfaction.
    • The role of technology in managing logistics and enhancing customer experience.

  5. The Pandemic's Impact

    • How Rappi adapted and grew during the pandemic, particularly in Argentina.
    • A notable surge in orders for products like ice cream and the importance of adapting offerings to consumer demands.

  6. Sustainability of VC-Funded Startups

    • Discussion on whether companies like Rappi represent sustainable business models.
    • The role of venture capital in scaling businesses rapidly and the potential pitfalls of this approach.

  7. Lucas's Current Endeavors

    • Transition from tech startups to a more traditional business model.
    • Lucas is currently involved in importing construction materials, aiming to capitalize on the anticipated construction boom in Argentina.

  8. Contact Information

Episode transcript
Stewart Alsop III00:00

Welcome to the Crazy Wisdom Podcast. This podcast is for you. If you have an insane drive to find the truth of things, it's not the good answers that we seek, but the good questions. I interview a range of different guests from many different fields, all with the intention to uncover the simple truths that are hidden in plain sight. Most people don't want to go there. I go there, my guests go there, and you benefit. Please let me know if you enjoy these episodes and as always, subscribe on itunes, Spotify or wherever you listen to the podcasts.

Stewart Alsop III00:35

Welcome to the Crazy Wisdom Podcast. My guest today is Luca Lucas Assad. He is a friend of Nico who I interviewed a few weeks ago down here in Argentina and he is an entrepreneur. He's ex Rappy and ex Rio Grande, which was a YC startup. He was a former pharmaceutical entrepreneur, not really tech involved, and then made the switch with Rappi into the world of tech startups. And Rappi is a very interesting company. I did some interviews in 2018 and 2019 from people in Colombia who had worked with Rappi as well, and it's been fascinating to watch their growth. So welcome to the show.

Luca Lucas Assad01:12

Lukas, thank you very much. Stuart, thank you for the intro. Indeed. I'm a friend of Nigo as well. I heard the podcast was really, really interesting. Nico is a different kind of person than me. He's much more like, I don't know. Yes, he's more like spiritual and theoretical. I'm more kind of practical and hands on kind of person. But we, we get along really, really well.

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