Collaborative Economy, Innovation and Competition

During the last year, the revenues of delivery platforms have grown considerably in El Salvador, a phenomenon that has increased competition and forces companies to innovate in order to attract new customers and retain existing ones.

Monday, January 25, 2021

Due to the restrictions imposed by the covid-19 outbreak, the change in shopping habits and the preference of many people to avoid going to commercial establishments, mobile platforms dedicated to home delivery have exponentially increased their operations and sales.

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Hugo App, is a clear example of what happened with delivery platforms in the context of change in the commercial reality. According to its executives, in the Salvadoran market the company increased its operations by 200% during 2020.

Pedropablo Donis, Hugo's Regional Marketing Director, told Elmundo.sv that "... '2020 was a year of learning and growth. We started with many expectations and, like any company, the pandemic forced us to accelerate the creation of new services, advance launches and create projects that only existed in our minds before the emergency'."

Since the end of 2020 Hugo App developed two new business lines for El Salvador, through which it intends to provide solutions to its customers. Freshly, which consists of making purchases of fresh produce from municipal markets, and Hugo Pay that takes you fully into the business of digital payments in partnership with U.S. Visa.

Alejandro Argumedo, Hugo's co-founder and CEO, explained that "... We not only want to innovate; we also want to contribute to the digitization of the economy in the region. We want to put El Salvador on the map as a technological hub in the region and seek to replicate the success of countries like Estonia."

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Because of the restrictions on movement decreed in Central American countries, orders in applications dedicated to home delivery have increased considerably.

The services of electronic delivery platforms such as Hugo and Uber Eats, among others, are among the few sectors that will be able to circulate in El Salvador after Nayib Bukele announced on March 21 the home quarantine, which will last 30 days.

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The mobile App, which at the beginning was used for home delivery of products, announced that since November 15 it has been carrying out tests to offer the passenger transport service in the capital of the country.

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