A confluence of Latin America, the US and Asia – ClearTips

Has been to mexico Known as an up-and-take tech hub and gateway to the Latin American market. As an investor who focuses on developer-focused products, open-source startups, and infrastructure technology companies with a particular interest in emerging market innovation, I want to do some firsthand learning there.

So, despite the ongoing epidemic, I took all necessary precautions and spent about seven weeks in Mexico from January to March. I have spent most of my time in the founders’ meeting about what they are building, why they are following those ideas, and how the entire ecosystem is evolving to support their ambitions.

Knowledge transfer is not the only trend flowing in the US-Asia-Latam nexus. The competition is also undone.

US-Asia-Latam Nexus

A fascinating, though not surprising, observation was how much Latam entrepreneurs looked to Asian tech giants for product motivation and development strategies. Companies such as Tencent, DiDi and Grab are household names among the founders. This makes sense because the market situation in Mexico and other parts of Latum is more similar to China, India and Southeast Asia than the US.

It is often the case that entrepreneurs first try to emulate and localize successful startups in the US. As they fit into the product-market, they begin to look to Asian tech companies for inspiration, morphing to suit local needs.

A good example is Rappi, an app that started as a grocery delivery service. Its future ambition is square to become LatAm’s supercap: it is expanding geographically aggressively in both And Productwise in delivery for restaurant orders, pharmacy and even COVID tests. It is also introducing new payment, banking and financial-services products. Rapi Pay was launched only a few weeks ago in Mexico, while I was still in the country.

Rapy now looks more like Maituan and Grab than any of its American counterparts, and this is not an accident. SoftBank, whose portfolio includes many of these Asian tech giants, invested heavily in the last two rounds of Rapi and now has a $ 5 billion fund dedicated to the LATAM region. Over the past 10 years, accumulated knowledge and experience from Asian technology has been shifting to similar companies like Rapi, under the proverbial nose of Silicon Valley.

US-Asia-LatAm Competition

Knowledge transfer is not the only trend flowing in the US-Asia-Latam nexus. The competition is also undone.

Due to similar market conditions, Asian tech giants are expanding directly into Mexico and other Latam countries. A closer look during my trip was DiDi.

In January 2018, Diedy’s introduction in Letam began with the acquisition of 99, a Brazilian ride-sharing company. In April 2018, Diddy entered Mexico with its bread-and-butter ride-sharing service. It was not until April 2019 that DiDi launched its food delivery service, DiDi Food, in Monterrey and Guadalajara, two of the largest cities in Mexico. Its expansion has not slowed down, as there is an additional earnings incentive of 10% to entice delivery drivers.

Promotion banner outside diDi distribution worker recruitment site

Image Credit: Kevin joo

My AirBnB in Mexico City took place two blocks away from the large WeWork building, where Diddy’s local office was located. Every day, I saw a long line of answering earning people – Diddy was waiting outside to be hired as delivery workers.

Meanwhile, the Uber office being literally a block away was hardly foot traffic. As Uber and Rapi fight for more wealthy consumers, Diddy is working to gain market share to low-income users, hoping that one day some of these people will reach the middle class and become profitable customers.

Check Also

How to Clear Browser Cache in Firefox, Safari, IE, Chrome, and Opera

Do you clear your browser cache regularly? If not, you should. Your browser cache is …

Leave a Reply

Your email address will not be published. Required fields are marked *