Background and Expansion of Jüsto
Jüsto, a Mexican online grocery startup that gained traction during the pandemic, announced the closure of its Mexican operations due to financial and strategic issues, according to information published on their website.
Jüsto’s unique model eliminated intermediaries and offered quality products, providing a distinctive customer experience for purchasing supermarket items. Modern and online, it stood out from traditional supermarket chains and other apps venturing into online consumption.
Despite its founding in 2019, the company will cease operations. In a statement on their official site, Jüsto mentioned: “We have made the difficult decision to discontinue Jüsto operations. This decision reflects a combination of financial, operational, and strategic factors. We are deeply grateful for the loyalty and support of our customers over the years.”
Origen y expansión de Jüsto
The idea for a fully digital supermarket emerged during a breakfast meeting where Ricardo Weder, Jüsto’s founder, explained his business concept to his team. The goal was to differentiate from large supermarket chains and other apps also betting on online consumption.
In 2019, Jüsto was founded and within months, it raised a seed funding round of $10 million. By June 2020, the company secured another $12 million investment round, and in October of that year, it obtained an additional $5 million.
The pandemic boosted the business model, enabling Jüsto to secure investments and grow exponentially in Mexico. Moreover, Ricardo Weder aimed to minimize human intervention during the purchasing process, thus avoiding intermediaries.
Jüsto’s success led to its expansion into Brazil and Peru, along with partnerships with Amazon and Uber.
Who is Ricardo Weder?
Ricardo Weder studied industrial engineering at Tecnológico de Monterrey and holds a certification from Endeavor’s Innovation and Growth program at Stanford University.
His involvement in the startup world led him to collaborate with Juan de Antonio, CEO of Cabify. Weder eventually became the General Manager for Mexico and later for Latin America at Cabify. After nearly four years there, he decided to embark on his own entrepreneurial journey in Mexico with an innovative idea.
Noticing the need to streamline grocery shopping, Weder founded Jüsto. He is also an angel investor in over 30 startups and has invested in five unicorn companies.
Impact of the Pandemic on Jüsto
Jüsto’s popularity coincided with the growth of e-commerce during the pandemic. However, as people returned to in-person activities, online grocery shopping transitioned from a necessity to an alternative. This shift caused problems in Jüsto’s business model.
Key Questions and Answers
- What was Jüsto’s unique selling proposition? Jüsto eliminated intermediaries and offered quality products, providing a modern and convenient online grocery shopping experience.
- When was Jüsto founded and what were its early investments? Jüsto was founded in 2019 and raised $10 million in seed funding shortly after. It later secured $12 million in a 2020 investment round and an additional $5 million that same year.
- How did the pandemic affect Jüsto’s business? The pandemic initially boosted Jüsto’s growth, but as people returned to in-person activities, online grocery shopping became less of a necessity and more of an alternative. This shift negatively impacted Jüsto’s business model.
- Who is Ricardo Weder and what is his background? Ricardo Weder studied industrial engineering at Tecnológico de Monterrey and holds a certification from Endeavor’s Innovation and Growth program at Stanford University. He has experience in the startup world, having worked with Juan de Antonio at Cabify before founding Jüsto.
- What other ventures has Ricardo Weder been involved in? Besides Jüsto, Ricardo Weder is an angel investor in more than 30 startups and has invested in five unicorn companies.
