The Exchanges

Q I love it. I love the fact that if it does well, you need more money, and if it doesn't, you're fine, actually. You mentioned there about being very strict on your zones that you started with. How important do you think it is to have very tight geographic boundaries when you're starting something like Rappi?

A Yeah, super important, because this business has hyper-local network effects. You need to make a specific user fall in love with your service, so that specific user in a specific neighborhood in Bogota or in Sao Paulo, she or he gives a shit if you have a 100,000 restaurants in other cities. She or he only cares about the important restaurants in that neighborhood, and that the service is amazing in that neighborhood, and for that, you have to have a lot of Density in terms of numbers of merchants and couriers concentrated in a small radius for the service to be great. So if you started to launch all around, you would have a crappy service with not an amazing offer or assortment for users, and I think that's what Rappi did well at the beginning. We focused in very small zones until we got funds, and after we cracked that zone and we cracked that unit economics, Then we went to the following zone.

AI assessment note: “Yeah, super important, because this business has hyper-local network effects.”

Q I love it. I love the fact that if it does well, you need more money, and if it doesn't, you're fine, actually. You mentioned there about being very strict on your zones that you started with. How important do you think it is to have very tight geographic boundaries when you're starting something like Rappi?

A Yeah, super important, because this business has hyper-local network effects. You need to make a specific user fall in love with your service, so that specific user in a specific neighborhood in Bogota or in Sao Paulo, she or he gives a shit if you have a 100,000 restaurants in other cities. She or he only cares about the important restaurants in that neighborhood, and that the service is amazing in that neighborhood, and for that, you have to have a lot of Density in terms of numbers of merchants and couriers concentrated in a small radius for the service to be great. So if you started to launch all around, you would have a crappy service with not an amazing offer or assortment for users, and I think that's what Rappi did well at the beginning. We focused in very small zones until we got funds, and after we cracked that zone and we cracked that unit economics, Then we went to the following zone.

AI assessment note: “Yeah, super important, because this business has hyper-local network effects.”

Q I do want to start with a little bit on you. So tell me, you know, we see the behemoth of this Rapi today, but how did it start and what was that founding moment for you with Rapi?

A Yeah, Rapi started five years ago. We were working in a B to B startup called Rapility, where we license software to the largest supermarkets All around the world. And we were seeing that users were super happy with that experience inside the app, but not with the logistics and they hated groceries that take 24 hours or 48 hours to get there. So we said, hey, why don't we try to do everything ourselves via these on-demand model. We started in a small neighborhood in corner shops delivered in 20 minutes, and that was it. That was all wrapping. So we started, we thought it was going to be amazing. We had no users, so we had to go to the streets, and we actually started giving away donuts for downloads, and that's how we started to gain traction in a very small neighborhood in Bogota, and we started not only acquiring users, but of course, giving away donuts to them gave us the opportunity to listen to them, and they started asking for a lot of more stuff, and that's why Rappi started to have Also restaurants, pharmacy, and everything that it has today.

AI assessment note: “We were working in a B to B startup called Rapility”

Q Can I ask, you mentioned donuts for downloads on the consumer side. It's a new model for restaurants to adopt as well, so how did the restaurant adoption process look for you?

A It was hard, mostly for the premium restaurants, because they didn't conceive the idea of their amazing Plates traveling in a bag of someone riding a bike, because these chefs put so much energy and love into each detail, that for them it was almost impossible. So we had to work with them, and work in the packaging. I remember that we used to do trials, so we went and we picked up the food, and then we delivered the food, and we took the temperature of the food, and we checked every detail, and we videotaped that, then go back to the chef, and it was super hard, but thankfully it It's now obvious that you can order from a Michelin star restaurant, and with good packaging, you can have a fabulous meal at home.

AI assessment note: “It was hard, mostly for the premium restaurants... So we had to work with them”

Q mentioned there the diversity of products that you serve in terms of diapers or shirts or food. The question I have, and Ulas at Streamline asks this too, how do you know when's the right time to expand your product offering? Because It's one thing to do food, but to do diapers and pharmacy and clothes is another. How did you know you were okay to expand the product offering?

A For us, it was just listening to users, because again, Rappi wasn't an amazing idea from any of the founders. Rappi launched as only groceries on demand, but then we were lucky enough, we had a blank field where users could order anything, and that blank field started to Become for us a great way of listening to users and move fast and get them what they wanted. So they started asking for restaurants. We got an order from a user in this blank field that said, hey, I need the equivalent in pesos of a hundred dollars, and I need it in my house because I need to pay someone. And any other company, I believe, at least in Latin America, would say, okay, this is a joke. Let's don't look at that, and let's continue working. After five 48 hours after reading that message, we implemented an on-demand ATM where users could order the equivalent to a hundred dollars or 200 dollars, and a courier will deliver the cash for them. Latin America, everyone uses cash. We would deliver cash for them in 15 minutes to their home or to a restaurant or whatever, and that grew amazingly well. It became five percent of our orders in year two. So it was about listening to users and moving fast, So to be super clear, when was the right time when users started asking for it?

AI assessment note: “when was the right time when users started asking for it?”

Q Totally agree with you in terms of that. I've had Alfred Lynn from Sequoia, one of your investors on the show, and when we spoke about DoorDash recently, me and him on the show, he said that chasing GMV can really make for bad habits and bad behaviors. What did you measure as your North Star metric in the early days? Was it GMV or was it another metric?

A For us, the key metric has been frequency of use. Yes, we're a multivertical app, and what makes Rappi amazing is to be able to really make your life better, not only with restaurants, but with pharmacy, with diapers, with liquors, with anything you want. If you want to change your shirt, you can send a courier to SADA and get a new shirt. So it's everything that is in your city in minutes. And frequency is that north metric for us that shows that users are using us and seeing us As we think that they should. So users that use rapid one or two times per month are not yet engaged as they should. Power users that order 20 times per month are what shows that we are doing a good job.

AI assessment note: “For us, the key metric has been frequency of use.”

Q left it behind. But this is so interesting. The final kind of part of it is we've had the consumers downloads for donuts. We've got the restaurants, which I love, and the service providers. In terms of the drivers, in London in particular, I know that your deliveries and many of the big competitors struggle on driver acquisition. How did you approach driver acquisition and what worked well for you?

A Yeah, here is the opposite. We don't struggle at all, because there's a lot of unemployment in Latin America, and underemployment also. So these are a lot of people that are either, they don't have a job, or have a job that pays less than the legal minimum wage. So there's a lot of people looking for opportunities, and most of our couriers are, students are paying their careers because of working a weekend in Rappi. And there's another very important point for Latin American, is that if you connect And do orders for an hour in wrapping. You'll earn, in average, twice the minimum wage of Latin America. So, that's very different to Europe, where sometimes it's kind of the same, but not with benefits, and there's this big issue. Here, these guys are making twice the equivalent to twice of the minimum wage per hour. Of course, there are independent contractors. They can connect and disconnect at any time. But the amazing thing, Harry, is that in countries like Colombia, 70% of the population, seven zero percent, earn less than two minimum wages per hour, so we are unfortunately poor countries, so it's an amazing opportunity, and we have thousands and thousands of stories of guys that had paid for school, guys that have learned how to code, and now work in startups coding because they had this opportunity, people that have paid for the education of their families, so it's super Powe…

AI assessment note: “here is the opposite. We don't struggle at all, because there's a lot of unemployment”

Q Can I ask, you mentioned donuts for downloads on the consumer side. It's a new model for restaurants to adopt as well, so how did the restaurant adoption process look for you?

A It was hard, mostly for the premium restaurants, because they didn't conceive the idea of their amazing Plates traveling in a bag of someone riding a bike, because these chefs put so much energy and love into each detail, that for them it was almost impossible. So we had to work with them, and work in the packaging. I remember that we used to do trials, so we went and we picked up the food, and then we delivered the food, and we took the temperature of the food, and we checked every detail, and we videotaped that, then go back to the chef, and it was super hard, but thankfully it It's now obvious that you can order from a Michelin star restaurant, and with good packaging, you can have a fabulous meal at home.

AI assessment note: “we had to work with them, and work in the packaging. I remember that we used to do trials”

Q mentioned there the diversity of products that you serve in terms of diapers or shirts or food. The question I have, and Ulas at Streamline asks this too, how do you know when's the right time to expand your product offering? Because It's one thing to do food, but to do diapers and pharmacy and clothes is another. How did you know you were okay to expand the product offering?

A For us, it was just listening to users, because again, Rappi wasn't an amazing idea from any of the founders. Rappi launched as only groceries on demand, but then we were lucky enough, we had a blank field where users could order anything, and that blank field started to Become for us a great way of listening to users and move fast and get them what they wanted. So they started asking for restaurants. We got an order from a user in this blank field that said, hey, I need the equivalent in pesos of a hundred dollars, and I need it in my house because I need to pay someone. And any other company, I believe, at least in Latin America, would say, okay, this is a joke. Let's don't look at that, and let's continue working. After five 48 hours after reading that message, we implemented an on-demand ATM where users could order the equivalent to a hundred dollars or 200 dollars, and a courier will deliver the cash for them. Latin America, everyone uses cash. We would deliver cash for them in 15 minutes to their home or to a restaurant or whatever, and that grew amazingly well. It became five percent of our orders in year two. So it was about listening to users and moving fast, So to be super clear, when was the right time when users started asking for it?

AI assessment note: “when was the right time when users started asking for it”

Q I do want to start with a little bit on you. So tell me, you know, we see the behemoth of this Rapi today, but how did it start and what was that founding moment for you with Rapi?

A Yeah, Rapi started five years ago. We were working in a B to B startup called Rapility, where we license software to the largest supermarkets All around the world. And we were seeing that users were super happy with that experience inside the app, but not with the logistics and they hated groceries that take 24 hours or 48 hours to get there. So we said, hey, why don't we try to do everything ourselves via these on-demand model. We started in a small neighborhood in corner shops delivered in 20 minutes, and that was it. That was all wrapping. So we started, we thought it was going to be amazing. We had no users, so we had to go to the streets, and we actually started giving away donuts for downloads, and that's how we started to gain traction in a very small neighborhood in Bogota, and we started not only acquiring users, but of course, giving away donuts to them gave us the opportunity to listen to them, and they started asking for a lot of more stuff, and that's why Rappi started to have Also restaurants, pharmacy, and everything that it has today.

AI assessment note: “Rappi started five years ago. We were working in a B to B startup”

Q left it behind. But this is so interesting. The final kind of part of it is we've had the consumers downloads for donuts. We've got the restaurants, which I love, and the service providers. In terms of the drivers, in London in particular, I know that your deliveries and many of the big competitors struggle on driver acquisition. How did you approach driver acquisition and what worked well for you?

A Yeah, here is the opposite. We don't struggle at all, because there's a lot of unemployment in Latin America, and underemployment also. So these are a lot of people that are either, they don't have a job, or have a job that pays less than the legal minimum wage. So there's a lot of people looking for opportunities, and most of our couriers are, students are paying their careers because of working a weekend in Rappi. And there's another very important point for Latin American, is that if you connect And do orders for an hour in wrapping. You'll earn, in average, twice the minimum wage of Latin America. So, that's very different to Europe, where sometimes it's kind of the same, but not with benefits, and there's this big issue. Here, these guys are making twice the equivalent to twice of the minimum wage per hour. Of course, there are independent contractors. They can connect and disconnect at any time. But the amazing thing, Harry, is that in countries like Colombia, 70% of the population, seven zero percent, earn less than two minimum wages per hour, so we are unfortunately poor countries, so it's an amazing opportunity, and we have thousands and thousands of stories of guys that had paid for school, guys that have learned how to code, and now work in startups coding because they had this opportunity, people that have paid for the education of their families, so it's super Powe…

AI assessment note: “here is the opposite. We don't struggle at all, because there's a lot of unemployment”

Q You can learn a lot from your grandmother. Final one, though, and it's like, what do the next five years hold for you with Rappi? What does that look like?

A The next five years for us are going to be about Extending what we can offer our power users, so we, we are a lot more focused on our high frequency users than in competing for cheap burgers for users that only order because of a discount. We target users that have most of things in life, but they don't have time, and our real purpose is to give time back to people and to families, and to be able to do that We are learning what else can we provide, and for example, we're now entering into pets, and users are loving our services and assortment of pets. We're now going a lot deeper into all of the baby category, and we are going into fintech and banking, so in five years, Rappi is going to be this super app for people that don't have a lot of time and need Help with a lot of things, and RAP is going to be able to provide not only groceries and restaurants and pharmacy, but also everything for your pets, services, your credit cards, and bank accounts. We launched last week in Mexico. We're launching in Brazil, and we had tens of thousands of people already in waiting list, so it's an opportunity to, with small incremental changes, improve people's lives, and again, keep working on those Retention cohorts and build this fan base. Rappi is not going to be the largest company in terms of number of users. It's going to be the largest company in terms of strong fan base, and what we're…

AI assessment note: “The next five years for us are going to be about Extending what we can offer”

Q you speak with such confidence, and when you look at Rappi's Day, it's such an incredible business, and it's, as you said, nine countries. When you look back, and when you think today is a leader, do you ever struggle with self-doubt when you're thinking, fuck, we're competing with Uber, it is a capital intensive business to run, Do you just struggle with self-doubt on a more personal leadership level?

A Yeah, that's a good question. So in terms of the other guys, I don't, because for Latin Americans, like, we had a culture that we always were thinking that Americans or Asians or everyone was smarter people, but when we went to California and we worked with other YC teams, these guys were amazing, but our Mexican-Colombian engineers are at the same level as Silicon Valley guys, and the talent is there. It was a lack of mindset, and a lack of believing that we could build a world-class company, and Mercado Libre has shown valuation of a hundred billion. It has shown that in Latin America, there's going to be a lot of other hundred billion dollar companies, so you have the talent. We've removed these glass ceilings of what Latin Americans can accomplish, so as a team, I think that we can Compete head to head with all of these other amazing guys with the advantage that we are local and we understand that something like RappiCash is amazing for our users. And that's something that now after five years of relaunching this, Uber is starting to talk about that idea. So I think being local is super important. Then it comes to the more personal doubts and that, well, for sure, like I had another company before and another before, and I had managed 300 people. But now I'm managing a team of 4000 people, a 150,000 couriers in the region. It's a challenge that, of course, I wasn't ready fo…

AI assessment note: “Then it comes to the more personal doubts and that, well, for sure”

Q Totally agree with you in terms of that. I've had Alfred Lynn from Sequoia, one of your investors on the show, and when we spoke about DoorDash recently, me and him on the show, he said that chasing GMV can really make for bad habits and bad behaviors. What did you measure as your North Star metric in the early days? Was it GMV or was it another metric?

A For us, the key metric has been frequency of use. Yes, we're a multivertical app, and what makes Rappi amazing is to be able to really make your life better, not only with restaurants, but with pharmacy, with diapers, with liquors, with anything you want. If you want to change your shirt, you can send a courier to SADA and get a new shirt. So it's everything that is in your city in minutes. And frequency is that north metric for us that shows that users are using us and seeing us As we think that they should. So users that use rapid one or two times per month are not yet engaged as they should. Power users that order 20 times per month are what shows that we are doing a good job.

AI assessment note: “For us, the key metric has been frequency of use.”

Q And one that you've clearly embraced so well. You mentioned the team there, and this again was one from Anu, but she said, what are the biggest challenges of scaling a startup in La Sam? And like, you've been very successful in getting incredible seasoned operators into the business. How do you get really successful seasoned operators to move to La Sam and work with Rappi?

A The honest answer is purpose, impact, the opportunity to build something larger than all of us. And if you compare this business with the same business in other parts of the world, with the poverty and opportunities in Latin America, it's tangible impact what we're creating, and missionaries love that. So you have to convince people that are smarter than you to come to work with you, and I find that really hard. Why does someone that is smarter than me will come to work with me? And the answer is they don't come to work for me. They come to work For a mission, and for a purpose that is larger than us, and Rappi is like this platform for amazing entrepreneurs to be able to explode everything they have inside them, and it's run like a pack of entrepreneurs. We're a very horizontal structure, and we're very honest. We're all, or most of us are partners and stockholders, so I think it's a great culture. It's not for everyone. It looks a lot more like Amazon than Google. It's Super long hours, hard work, and we love it, but there's no massages and ping pong tables or whatever. We're very committed.

AI assessment note: “The honest answer is purpose, impact, the opportunity to build something larger than all of us.”

Q you speak with such confidence, and when you look at Rappi's Day, it's such an incredible business, and it's, as you said, nine countries. When you look back, and when you think today is a leader, do you ever struggle with self-doubt when you're thinking, fuck, we're competing with Uber, it is a capital intensive business to run, Do you just struggle with self-doubt on a more personal leadership level?

A Yeah, that's a good question. So in terms of the other guys, I don't, because for Latin Americans, like, we had a culture that we always were thinking that Americans or Asians or everyone was smarter people, but when we went to California and we worked with other YC teams, these guys were amazing, but our Mexican-Colombian engineers are at the same level as Silicon Valley guys, and the talent is there. It was a lack of mindset, and a lack of believing that we could build a world-class company, and Mercado Libre has shown valuation of a hundred billion. It has shown that in Latin America, there's going to be a lot of other hundred billion dollar companies, so you have the talent. We've removed these glass ceilings of what Latin Americans can accomplish, so as a team, I think that we can Compete head to head with all of these other amazing guys with the advantage that we are local and we understand that something like RappiCash is amazing for our users. And that's something that now after five years of relaunching this, Uber is starting to talk about that idea. So I think being local is super important. Then it comes to the more personal doubts and that, well, for sure, like I had another company before and another before, and I had managed 300 people. But now I'm managing a team of 4000 people, a 150,000 couriers in the region. It's a challenge that, of course, I wasn't ready fo…

AI assessment note: “Then it comes to the more personal doubts and that, well, for sure”

Q you also got the check from then. And I guess a question that I have is like, when you do raise a lot of money, it takes a little bit of a mindset shift in terms of how you allocate the capital that you've raised. Was that a difficult mindset shift for you to make in terms of suddenly having a lot more money? And how did you embrace that?

A Yeah, first of all, with a lot of responsibility, because we were the first ones to be raising these amounts of money in Latin America. And we knew that if we fucked up, there wasn't going to be a lot of money for the continent. So a lot of responsibility, not only from us, but from all of the team, and of course, we've made a lot of mistakes, but the right mindset for us has been, it's all about building long-term value. So if you can spend a lot of money today to accelerate acquisition of high-value users, don't spend that money in three months. If you have the opportunity to bring them all in one month, go for it, Because these companies are expensive companies to run, and every single month of burn, you never get that money back. So that mindset of let's bring all of that future value as fast as we can, it has been like the mindset for us.

AI assessment note: “the right mindset for us has been, it's all about building long-term value.”

Q I'm totally with you. I hear so many, like, what are the tips? And you're like, fuck tips. It's about numbers and growth. So I'm totally with you there. Can I ask? I heard that the Sequoia story is a really interesting one. So Sequoia led the A round. How did that come together? And how did Sequoia come to invest in the Series A? What's the story there?

A Yeah, lots of stories there, but to tell you a funny anecdote, we were at another investor, and we had the partner meeting in Sequoia, and we're at another investor, very close by in Palo Alto, but we were very tight. We tried to order a car, and there were no cars available, so we had started, like, jogging to the meeting, but we were not going to make it, and then a truck, like a sewage truck, stopped by, and we tell him, hey, please stop. Help us, take us to the meeting, and it was a Latin American guy, so we made a great connection, and the guy took us to the meeting, and this big sewage truck said, service you can trust, and we got to the front door of Sequoia in that truck, and we have a beautiful photo with that, with the truck, and we got there in time for the partner meeting, so it was super stressful, but then thankfully, it went well, and we made it.

AI assessment note: “to tell you a funny anecdote, we were at another investor, and we had the partner meeting in Sequoia”

Q you also got the check from then. And I guess a question that I have is like, when you do raise a lot of money, it takes a little bit of a mindset shift in terms of how you allocate the capital that you've raised. Was that a difficult mindset shift for you to make in terms of suddenly having a lot more money? And how did you embrace that?

A Yeah, first of all, with a lot of responsibility, because we were the first ones to be raising these amounts of money in Latin America. And we knew that if we fucked up, there wasn't going to be a lot of money for the continent. So a lot of responsibility, not only from us, but from all of the team, and of course, we've made a lot of mistakes, but the right mindset for us has been, it's all about building long-term value. So if you can spend a lot of money today to accelerate acquisition of high-value users, don't spend that money in three months. If you have the opportunity to bring them all in one month, go for it, Because these companies are expensive companies to run, and every single month of burn, you never get that money back. So that mindset of let's bring all of that future value as fast as we can, it has been like the mindset for us.

AI assessment note: “the right mindset for us has been, it's all about building long-term value”

Q It's interesting, but you mentioned the nine countries. With every country expansion, there's always competitors, and it is a competitive market. How do you think about the right way to analyze competition today, and how do you think about competition?

A Yeah, so we're super grateful about competition, because, for example, five years ago, we used to send the courier to the restaurant to place the order in the restaurant. So, of course, that's not the most efficient way. They had to drive to the restaurant Order and wait for 15 minutes until the burger was cooked. Thanks to competition and to Beritz, for example, they came, and of course, they had already the tablets for restaurants, and they sent the order, and the restaurant accepted the order, and we had nothing when they landed. So, thanks to them, we accelerated in so many ways that made our service a lot better, and it's great to have good competitors, because you're always moving faster and faster, and there's a saying in Latin America that You run as fast as the Doberman that is running behind you, and that's life. So we have a lot of Dobermans running behind us. So yeah, for us, we see it as energy and fuel to improve.

AI assessment note: “for us, we see it as energy and fuel to improve.”

Q of building that long-term value. Can I ask, you mentioned growth, growth, growth, and I'm totally with you in terms of the emphasis there. There is a time when it has to switch to more profitability or a bigger focus on unit economics. How do you think about growth versus Profitability and unit economics. And when does that switch happen, do you think? And where are you now as well?

A That's a very good point, Harry. And it's growth, growth, growth when you've cracked unit economics. If you haven't cracked unit economics, it's unsustainable to scale. So you have to crack unit economics and then go as fast as you can, knowing that you're going to be burning a lot of money to grow. The perfect analogy for RAPI, Is think about like a store for a coffee shop. You open a coffee shop and you make it work. So you are making money in that coffee shop. So then you go to an investor and you tell him, hey, I want to scale faster. In the past, you had to wait till you made a lot of money in that one store. And with the savings of that store, you go and open the second and the third store. But then today, of course, you go to an investor and you tell them, hey, look at this store, look at this beautiful retention. Look at this beautiful economics of this one store. I want to do a hundred. And then they give you money to do a hundred. And you start the other stores. And of course, building those stores and putting the furniture of those stores costs you a lot of money. So people tell you, hey, you're crazy. You're burning money. What about the economics? It doesn't make sense. No, dude, relax. Look at my economics in the zones that I'm already mature. I know how to replicate this. I'm just opening more stores. And I have to wait until I finish remodeling the stores, let's…

AI assessment note: “it's growth, growth, growth when you've cracked unit economics.”

Q It's interesting, but you mentioned the nine countries. With every country expansion, there's always competitors, and it is a competitive market. How do you think about the right way to analyze competition today, and how do you think about competition?

A Yeah, so we're super grateful about competition, because, for example, five years ago, we used to send the courier to the restaurant to place the order in the restaurant. So, of course, that's not the most efficient way. They had to drive to the restaurant Order and wait for 15 minutes until the burger was cooked. Thanks to competition and to Beritz, for example, they came, and of course, they had already the tablets for restaurants, and they sent the order, and the restaurant accepted the order, and we had nothing when they landed. So, thanks to them, we accelerated in so many ways that made our service a lot better, and it's great to have good competitors, because you're always moving faster and faster, and there's a saying in Latin America that You run as fast as the Doberman that is running behind you, and that's life. So we have a lot of Dobermans running behind us. So yeah, for us, we see it as energy and fuel to improve.

AI assessment note: “for us, we see it as energy and fuel to improve.”

Q Okay, final one. You mentioned that, like, no ping pong tables and, you know, no massages, etc. Anu told me as well that it's probably the most stressful job on the planet that you have. She asked, how do you deal with the stress? Like, what is your coping mechanism?

A To be honest, I don't think about stress. I imagine that I'm stressed. I'm not going to tell you that I know how to manage stress, but I don't even think about stress. Because there's so much energy in the team and so much things to be done that the beauty of Rappi is that you forget about yourself. And honestly, I sometimes forget about even having lunch because we are just creating stuff or executing. And again, this is not for everyone. A normal human being that wants a bit more of balance in their life is not going to be super happy in Rappi. But as Jeff Bezos says, it's not about balance. You only have one life. It's about energy, and this job gives you a lot of energy. And if you have energy, even if you only have one hour for your family, you're gonna make them laugh, and you're gonna hug them, and you're gonna be happy with them. So I think that's what we are trying to create here.

AI assessment note: “To be honest, I don't think about stress.”

Q of building that long-term value. Can I ask, you mentioned growth, growth, growth, and I'm totally with you in terms of the emphasis there. There is a time when it has to switch to more profitability or a bigger focus on unit economics. How do you think about growth versus Profitability and unit economics. And when does that switch happen, do you think? And where are you now as well?

A That's a very good point, Harry. And it's growth, growth, growth when you've cracked unit economics. If you haven't cracked unit economics, it's unsustainable to scale. So you have to crack unit economics and then go as fast as you can, knowing that you're going to be burning a lot of money to grow. The perfect analogy for RAPI, Is think about like a store for a coffee shop. You open a coffee shop and you make it work. So you are making money in that coffee shop. So then you go to an investor and you tell him, hey, I want to scale faster. In the past, you had to wait till you made a lot of money in that one store. And with the savings of that store, you go and open the second and the third store. But then today, of course, you go to an investor and you tell them, hey, look at this store, look at this beautiful retention. Look at this beautiful economics of this one store. I want to do a hundred. And then they give you money to do a hundred. And you start the other stores. And of course, building those stores and putting the furniture of those stores costs you a lot of money. So people tell you, hey, you're crazy. You're burning money. What about the economics? It doesn't make sense. No, dude, relax. Look at my economics in the zones that I'm already mature. I know how to replicate this. I'm just opening more stores. And I have to wait until I finish remodeling the stores, let's…

AI assessment note: “it's growth, growth, growth when you've cracked unit economics.”