Canada-based food delivery service Tapioca Express (TSX:TSI) is taking advantage of a new wave of fast-food and grocery shoppers in Venezuela to become a major player in a fast-growing food-delivery business in the country.
In an effort to compete with the likes of Food2Go and DoorDash, which are competing to offer fast food delivery in Venezuela, the company has opened a grocery store and a grocery delivery service.
In a press release this week, the grocery delivery startup reported that it had opened a franchise in Caracas.
“The company has now expanded its operations in Caracol, Venezuela, and has received positive feedback from local communities,” said company CEO Luis Garcia-Toledo.
“It is now time for us to expand our business in Venezuela.”
In Caracas, Tapiaca Express, which is owned by Mexico-based company Grupo Tapiaco (TSE:GSI), offers delivery services to more than 50 restaurants, grocery stores, and supermarkets, including Caracas-based grocery chain Oaxaca Foods.
The company offers delivery through its own fleet of vehicles, which can be customized to carry a wide variety of products, including frozen and frozen-to-order items.
Its trucks can carry up to 200kg of food, according to its website.
Its business model relies on the loyalty of customers, who can buy a bag of products for $5 per order, which then comes back to the company with a “credit card” for the next delivery.
Grupo Tapiraco, which operates in the United States and Canada, has also opened two grocery stores in Venezuela.
The grocery delivery company is also working with local authorities to ensure the safety of its customers and to ensure that customers are not overcharged, said Sergio Martínez, chief executive of Tapioa Express.
He added that the company does not pay any sales tax.
Tapioca Express has received “very positive feedback” from local authorities in Carápolis, said Garcia-Torres, the CEO.
“We are looking forward to expanding our business here in Venezuela in the future.”