// STARTUP COMPARISON
Rappi TurboCargo vs Flanks
Rappi TurboCargo failed in 2023 due to Unit Economics. Flanks failed in 2024 due to Bad Timing. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 Rappi TurboCargo | 🔥 Flanks |
|---|---|---|
| Sector | Marketplace | Fintech |
| Country | Colombia | Spain |
| Founded | 2021 | 2019 |
| Died | 2023 | 2024 |
| Raised | $150M | €10M |
| Peak | 30 cities, 9 countries (2022) | €10M raised |
| Primary Cause | Unit Economics | Bad Timing |
// WHY EACH FAILED
🔥 Rappi TurboCargo
Unit Economics
After the dark store collapse, Rappi launched TurboCargo — a B2B last-mile logistics product for e-commerce merchants, competing with DHL, FedEx, and local players. The product attracted 8,000+ SME merchants but the competitive dynamics were brutal: DHL and FedEx offered next-day rates of $3.50/package; Rappi's gig-economy model cost $5.50/package due to rider minimum guarantees. TurboCargo never achieved the density needed to compete. Rappi shut TurboCargo in Q2 2023, writing off $80M in invested capital.
// LESSON
Gig workers solve the labor flexibility problem but create a cost floor that's higher than established courier fleets. If DHL can move a package for $3.50 with owned vehicles and route density, your gig-economy platform needs 2× the volume to reach the same cost. You probably won't get there.
Gig workers solve the labor flexibility problem but create a cost floor that's higher than established courier fleets. If DHL can move a package for $3.50 with owned vehicles and route density, your gig-economy platform needs 2× the volume to reach the same cost. You probably won't get there.
🔥 Flanks
Bad Timing
Flanks built open finance infrastructure for wealth managers and banks in Spain, allowing them to aggregate client portfolios across custodians. The product was technically sound and the market need genuine. However, Spanish banks moved extremely slowly on open finance adoption, and the regulatory framework (PSD2 extensions for investment data) remained incomplete. Sales cycles of 18-24 months with major banks proved incompatible with startup runway. The company wound down in 2024 after Series A fell through.
// LESSON
B2B fintech selling to Spanish banks requires 3x the runway of a typical startup sales cycle. If you can't sign a pilot in 6 months, assume 24 months to revenue. Build the financial model accordingly or don't start.
B2B fintech selling to Spanish banks requires 3x the runway of a typical startup sales cycle. If you can't sign a pilot in 6 months, assume 24 months to revenue. Build the financial model accordingly or don't start.
// EXPLORE FURTHER