Bringing innovation to a space that hadn’t changed much in decades has paid major dividends. Tens of thousands of businesses and individuals use Loggi to have meals, documents, and larger shipments delivered from another part of their city, often in less than seven minutes. Even long-distance orders, which typically take four or five days in Brazil, arrive in less than two days. And Loggi tends to be 70% cheaper than any of the country’s seven large courier service providers, says Lecuyer.
The company started small, using its software to deploy a fleet of Loggi-owned motorbikes to navigate Sao Paulo’s notoriously bad traffic. Soon it expanded to offer services within other cities, building a nationwide network that includes its own vans, trucks, and distribution hubs.
Sales leapt forward when the company figured out how to apply the dynamic allocation algorithm it used for the last-mile problem to the “first-mile” problem: how to optimize the pickup of products, whether from stores, pop-up trucks, or people’s porches. This was a particularly big deal in Brazil, where the majority of orders are shipped directly from thousands of stores or small warehouses, rather than through massive, Amazon-style distribution hubs.
“Sellers want to spend their time selling, but the only option for most businesses was to spend 30–40 minutes at the local post office,” he says. “That’s time they’re not in front of their computers marketing or selling.”
Loggi continues to improve its systems to further reduce costs. Engineers recently rewrote the code for its advanced sorting equipment so products are no longer dropped in a bin heading to a city or region but instead are assigned directly to a specific route and driver. Loggi also worked out physical security protocols so that products requiring air shipment could be X-rayed in its warehouse rather than wait in long lines to be X-rayed at the airport.
Like his peers at Veho and Sendcloud, Lecuyer believes that removing friction from product delivery is the missing link to a massive increase in e-commerce. “The e-commerce economy is very solid in Brazil, but it’s still less than 10% of all retail sales,” he says.