Latin American delivery startup Rappi stated Thursday it has laid off 6% of its staff, less than a year after Japan’s SoftBank invested almost $1 billion in the firm.
Rappi didn’t specify the number of jobs it’s reducing. According to the Brazil Journal, Rappi employs about 5,000 people, which implies the job cuts might have an effect on at least 300 employees.
The on-demand delivery app stated its “inside management team” made the layoff determination. The agency’s board of administrators includes a SoftBank consultant.
SoftBank has been facing stress to make Rappi a success following sheer losses at two of its other giant investments – Uber and WeWork.
Rappi, which has stepped into nine nations since its establishment back in 2015, delivers everything from groceries and restaurant food to medicines and furniture, It has recently expanded into scooter rental, travel, and primary banking services.
Rappi is also developing a trove of consumer and sales data from thousands of customers that’s highly desired by consumer brands, restaurants, supermarkets, and stores.
Softbank’s funding of almost $1 billion last April made Rappi its highest bet in Latin America, where the Japanese conglomerate plans to invest nearly $5 billion.
When asked how Rappi would turn in a profit, co-founder Sebastian Mejia advised said his precedence was to grow fast, and that traders had been on a panel with the plan.