AppJusto Suspends Operations Amid Financial Challenges

AppJusto, a Brazilian socialtech company founded in 2020 to promote fair practices in the delivery market, has announced the suspension of its operations. The startup aimed to offer an alternative to the dominant market players by focusing on fair rates for restaurants and greater autonomy for delivery drivers. However, despite its efforts, the company has cited financial constraints as the reason for its decision to halt operations.

The company was founded in response to widespread dissatisfaction among delivery drivers and restaurant owners regarding the conditions imposed by major players in the market, particularly iFood, which controls a significant share of the Brazilian delivery market. AppJusto introduced a business model that allowed delivery workers to set their own prices, avoiding the use of algorithms that penalize drivers who refuse rides. This approach aimed to address concerns over the working conditions in the gig economy, providing a more equitable alternative for both drivers and restaurants.

During its short period of operation, AppJusto managed to make a notable impact. The platform facilitated over 70,000 deliveries, reportedly increasing drivers’ earnings by 38% compared to other platforms and saving over R$1 million in fees for partner restaurants. The startup also achieved a record-breaking equity crowdfunding campaign in Brazil, raising over R$1.8 million from 939 investors through the Kria platform. Despite these achievements, the company struggled to secure sufficient funding and faced challenges in scaling its operations.

In a statement, the company expressed gratitude to its community of users, partners, and investors and reiterated its commitment to the principles that guided its creation. “We continue to believe in the importance of combating monopoly and precarious work, using technology to create fair social businesses,” the company stated. Despite its closure, AppJusto remains hopeful about future opportunities to address the issues it set out to tackle.