Rappi multi-vertical lifetime value model

The core bet is that Rappi is not trying to win one delivery category, it is trying to turn one acquired user into a much heavier, longer lasting customer across many categories. In practice, that means food brings people in often, then grocery, pharmacy, travel, payments and ads make each customer more valuable over time. The evidence shows this in cohort behavior, with usage compounding as customers add categories and stay inside the same app.

• More than 90% of Rappi customers buy from at least two categories, and average purchase frequency rises from 2 orders per month in year 1 to 6 in year 3 and 11 in year 5. That is what expanding lifetime value looks like in the actual product.
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• Multi verticality also improves the delivery network itself. If the same rider can pick up food, groceries, or convenience orders in the same dense area, drop density rises and cost per order falls. That pushes the model closer to a hub and spoke system than pure point to point delivery.
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• The closest playbook is Meituan and, more recently, Swiggy. The pattern is the same, use high frequency, lower margin delivery to build habit, then layer in higher margin businesses like advertising, fintech, travel, or merchant tools that monetize the same customer and merchant base more efficiently.
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Going forward, the winners in on demand will look less like single purpose delivery apps and more like local commerce operating systems. If Rappi keeps deepening multi category behavior, payments and merchant services, customer lifetime value should keep widening faster than customer acquisition cost, which is how the model matures from growth engine into profit engine.