“Data-driven hyper-personalisation will give every user the best shopping experience”

E-commerce is booming, with an expected annual growth rate of 11.51% until 2027, when it is estimated to generate revenue of $6.35 trillion and add 5.29 billion users. Mexico ranks second in Latin America in terms of e-commerce market share, with more than 28% of the market, and online sales now account for up to 11.3% of retail sales nationally. The retail sector also dominates e-commerce in the country, a market that could be worth US$68.2 billion by 2027.

It is precisely in Mexico that Jüsto, the country’s first fully digital supermarket, was launched in 2019. Founded by Ricardo Weder, Ricardo Martínez and Alejandro Sisniega, the company has already expanded to Peru and Brazil and currently has more than 2,000 employees, with support from BBVA Spark. In its latest round of financing (in April 2022), it raised $152 million, bringing the company’s total capital to $244 million. Some have identified Jüsto as the next Mexican unicorn, although, as CEO Ricardo Weder points out, “at this point we are not chasing a label, we are chasing profitability”. This entrepreneur has shared with BBVA Spark the keys to an online supermarket that breaks the mould.

Before founding Jüsto, he was president of Cabify, in addition to holding other positions in the company. Why did you decide to start your own company, and how did the Jüsto concept come about? 

I have always been very clear about my personal goal of transforming and influencing millions of people through entrepreneurship and technological development to make a positive impact in Latin America, especially in Mexico. I saw a great opportunity in the consumer industry because it impacts everyone through different distribution channels and is a fundamental part of the economy and society as a whole. We also identified many opportunities in the industry’s business as usual and decided to transform it.

Jüsto’s business model is based on the e-commerce boom, the quick commerce trend, a commitment to local products and reducing the use of plastic. How do solutions like yours meet today’s consumer demands? What is the role of technology as a differentiator?

We founded Jüsto to disrupt the industry through innovation, technology and fair practices. For us, this goes beyond trends, it is our DNA. We focus on fair practices with our various stakeholders and the environment, and thanks to technology, data and innovation, the business can be much stronger and more efficient. Our technology must support our complex operations, but at the same time meet the needs of the user.

Jüsto’s corporate identity is based on the concept of a fair price, which it is able to offer its customers through strategies such as eliminating intermediaries. How do you balance optimising the supply chain with supporting small local producers?

We have always been committed to cutting out intermediaries. So our biggest allies have been our suppliers since we started. We have incredible stories of new product development and distribution channels for more than 100 entrepreneurs. To give you an idea, an average of 70% of our monthly purchases are from MSMEs. This strategy has its risks and challenges, but because it is one of our core beliefs, we have put processes in place to make it easier for suppliers to grow with us. In fact, we are about to launch our Jüsto Accelerator to do what we have been doing for almost 4 years now in a more orderly way: accompany them in their growth and professionalisation.

It is estimated that almost 36% of Mexicans already buy or order groceries online. What is Jüsto’s growth curve, and how has its proposition been received by consumers?

When we started operating in 2019, we encountered resistance from many people to having someone else do their grocery shopping for them. Despite this, we found our early adopters [the first customers to try a new service], grew and understood the business better, and this allowed us to have more tools to better manage the exponential growth we had due to the pandemic. Almost 4 years after that first order, we now have operations in Mexico City, Monterrey, Guadalajara and Querétaro, as well as in São Paulo and Lima, thanks to the acquisition of Freshmart. Mexico remains our most important market. In 2022 alone, our business in the country grew by 200%, and accounts for 60% of our total users.

What were the challenges and lessons learned from your internationalisation process in Peru and Brazil? Are you planning to expand to other countries? 

Of course we are! We want to be the most popular supermarket in Latin America by 2030. We are currently in a process of consolidation after our exponential growth, which brought many challenges. Several of us in the team had previous experience in opening new markets, which is why we opened in Brazil and acquired Freshmart in Peru after seeing a great opportunity. I think the biggest lesson we have learned is that the industry has different complexities in each country and that, although we are Latin Americans, the culture and idiosyncrasies of each country are different.

Earlier this year, BBVA Spark identified super apps and application programming interfaces (APIs) as two of the technology trends that will shape 2023, driving the integration of digital platforms and economies of scale. What innovative technologies and solutions do you see shaping the direction of the e-commerce sector?

Undoubtedly, hyper-personalisation, which will allow each user to have a data-driven experience that is completely tailored to their needs and lifestyle at every stage of their shopping journey. Artificial intelligence will have an impressive impact on achieving this personalisation and constantly improving the user experience through UX and natural language processing. Other areas where AI will change the way we do things include inventory optimisation, logistics and route optimisation, and fraud detection.

If you had to give one piece of advice to other entrepreneurs who are considering starting their own project, or who want to accelerate their growth if they have already started, in a situation of global uncertainty, what would it be?

Have a clear vision, experiment and learn very quickly, always stay close to the users and surround yourself with the best possible team.