// STARTUP COMPARISON
Rappi (2022 crisis) vs Glovo (regulatory crisis)
Rappi (2022 crisis) failed in 2022 due to Unit Economics. Glovo (regulatory crisis) failed in 2023 due to Regulation. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 Rappi (2022 crisis) | 🔥 Glovo (regulatory crisis) |
|---|---|---|
| Sector | Marketplace | Marketplace |
| Country | Colombia | Spain |
| Founded | 2015 | 2015 |
| Died | 2022 | 2023 |
| Raised | $2B | €1.1B |
| Peak | $5.25B valuation | €2.3B valuation |
| Primary Cause | Unit Economics | Regulation |
// WHY EACH FAILED
🔥 Rappi (2022 crisis)
Unit Economics
Rappi, Colombia's first unicorn and Latin America's most funded startup, raised $2B and reached a $5.25B valuation. The 2022 global tech downturn exposed chronic unit economics problems — delivery subsidies, low basket sizes, and high customer acquisition costs made the path to profitability unclear. Rappi laid off approximately 6% of its workforce in 2022 and cut unprofitable verticals.
// LESSON
Super-app strategies require the core vertical to be profitable before adding adjacencies. Each new vertical is a bet funded by the core. If the core bleeds, every adjacency accelerates the bleeding.
Super-app strategies require the core vertical to be profitable before adding adjacencies. Each new vertical is a bet funded by the core. If the core bleeds, every adjacency accelerates the bleeding.
🔥 Glovo (regulatory crisis)
Regulation
Glovo, founded in Barcelona in 2015, built its business model on gig-economy couriers classified as independent contractors. Spain's Ley Rider (Riders' Law) came into force in August 2021, requiring platforms to employ delivery couriers. Glovo initially refused, accumulating €79M in fines. By 2022 it had laid off 250 tech employees. Delivery Hero, which had acquired Glovo for €2.3B in 2021, took a significant write-down.
// LESSON
Building on regulatory arbitrage — classifying employees as contractors to reduce costs — is borrowing time, not creating value. Every labor-platform regulator in the world is watching Uber, Deliveroo, and Glovo. The clock runs in every jurisdiction simultaneously.
Building on regulatory arbitrage — classifying employees as contractors to reduce costs — is borrowing time, not creating value. Every labor-platform regulator in the world is watching Uber, Deliveroo, and Glovo. The clock runs in every jurisdiction simultaneously.
// EXPLORE FURTHER