At a Glance
Location: Rio de Janeiro, Brazil
Impact Areas: Labor Inclusion, Environment
Joined NESsT Portfolio:
The package delivery industry in Brazil is valued at US$24 billion per year and growing, powered by 1.5 million “motoboys” who deliver packages on motorbikes. Only 23% of motoboys work under formal contracts and with legal registrations, resulting in poor employment conditions. Their motorbikes add to congested roads, noise levels and pollution in the cities.
Pedala is a bicycle-based urban delivery social enterprise that trains, hires and professionalizes at-risk youth as deliverers. They provide services for the delivery of documents, items purchased through e-commerce sites and food. The delivery service is environmentally friendly, faster and cheaper than their competitors.
Pedala currently employs 50 at-risk youth as bike messengers and has 200 clients in Rio de Janeiro. Most employees come from low-income backgrounds and have never worked before in the formal economy. A job with Courrieros gives them regular income, health care, social security and opportunities for further career development.
Results & Impact
at-risk youth employed
at-risk to be employed by 2020
carbon dioxide emissions conserved
Pedala joined the NESsT portfolio in 2017. NESsT is working with Pedala to take its business and social impact to the next level through financial investment and business development support.
Pedala has been profitable since it started in 2013. There is strong demand for the service as more and more Brazilians make online purchases. The company needs to invest in expanding to new neighborhoods in Rio de Janeiro and increasing its team to meet this demand.
NESsT is investing growth capital to help Pedala open its first expansion office in the Barra de Tijuca region in 2018, which will double its reach and employ more than 30 new employees.
Our on-the-ground portfolio team in Brazil and our network of advisors will also be working directly with the founders to help them build management capacity to expand the team and improve the cost-revenue structure to increase profitability. Additionally, NESsT will help Pedala set up systems to track sales and customer feedback, improve its marketing and market position, and develop growth plans and investment strategies.
With the right type of financial and business development support, NESsT expects Pedala to continue on a strong growth trajectory and serve as a possible model for replication in other cities throughout Brazil.