Chile’s company arrives in Argentina that promises to reduce logistical costs
Alvaro Echeverría and Eyal Shats are the most feared neighboring entrepreneurs by the big investors of the likes of Telefónica and The Venture City. Its platform is a kind of “Uber Eats of transport”. They have offices in 7 countries and customers such as Unilever, Cencosud and Falabella.
The story of Chilean startup SimpliRoute, a logistics optimization platform for retail and ecommerce, began in 2015. It was created by Alvaro Echeverría and Eyal Shats and operates in more than 25 countries. Three years later he opened offices in the United States, in 2019 he arrived in Peru and Mexico. In February of this year, he arrived in Uruguay and in August, opened in Colombia. This month, he landed in Argentina.
They specialize in finding the best delivery routes for large retailers through machine learning and artificial intelligence. Alvaro Echeverría, co-founder & CEO of SimpliRoute, told BAE Negocios: “With our software we allow companies, of various productive capacities, to save time and resources. They can reduce their logistical expenses by up to 30%. It’s like a kind of UBER Eats transport that allows them to stay in touch with drivers all the time when they’re on the street. The service costs an average of $1955 per vehicle per month.”
SimpliRoute, a kind of Uber Eats transport
Its customer list in Chile has companies of the likes of Unilever, Walmart, Cencosud, among other brands. They are the same companies that come to conquer in Argentina.
The product they offer seeks to revolutionize logistics and is so attractive that it seduced large investors. “Telefónica is one of our partners, invested with Wayra. In the United States we did another round at 500 Startups and our series raised $3 million. An investor, The Venture City, joined, which is a Spanish-American investment fund that helps us expand,” Echevarría said.
Unlike other sectors that were affected by the pandemic, in the case of SimpliRoute it prompted them to grow even more. The CEO noted: “We decided to land in Argentina because it is a very relevant market, ecommerce and digital SMEs have grown a lot, as in all of Latin America. During the pandemic the logistical issue has had explosive growth, the growth of ecommerce made all companies feel the need for more logistical intelligence. SMEs were forced to buy technology in order to sell. In the last three months, we have added 250 customers across the region.”
Chilean entrepreneurs chosen by big investors arrive
In Buenos Aires, they will operate based in Palermo. They have an Argentine who makes technological developments from here for Chile, they incorporated a self senior and are in the process of hiring employees for the commercial area. “If we achieve the growth we expect and need to, we may do technological development from Argentina,” he said. One of the customers they already have is Total Entrega, a logistics company that provides services to retail and has more than 300 vehicles.
At the age of 33, Alvaro Echeverría repeats: “Our vision is to be leaders of Latin America with logistical intelligence”. He’s sure he’s going to make it. He says he was a researcher at the University of Chile and had to do his Magister thesis on operation management and decided to take all the academic background to the real world. “I developed a mathematical model that allowed to organize the routing of firefighters in Santiago de Chile, reduced by 40% the arrival time of the firefighters, it was very positive because we helped them to be more efficient and to be able to save more lives. Your friend and co-worker. Eyal Shats helped him a lot and discovered they could be a good team.
“We both gave up the Scopix company where we worked to launch SimpliRoute. You have to throw yourself with everything when you want things to work out. The pandemic delayed our expansion, but it boosted our business,” the CEO said. Even today, Chilean firefighters appreciate your input.