02/04/2019
In the dynamic landscape of urban mobility, few stories captivate like that of 99, a Brazilian startup that not only revolutionised how people moved across cities but also etched its name in history as the country's first 'unicorn' company. What began as a simple vision to connect taxi drivers with passengers rapidly evolved into a sophisticated ride-hailing giant, attracting global investment and ultimately a monumental acquisition. This is the compelling journey of 99, from its nascent beginnings to its billion-dollar triumph, and the subsequent ventures of its visionary founders.
The Genesis: A Vision for Urban Mobility
The year 2012 marked the birth of 99, initially known as 99 Táxi. It emerged from a fundamental desire to innovate within Brazil's bustling urban centres, addressing the perennial challenge of efficient transportation. The initial concept was elegantly simple yet profoundly impactful: an application designed to seamlessly connect traditional taxi drivers with passengers. This direct bridge offered a new level of convenience for riders and a more streamlined workflow for drivers, promising to modernise an age-old industry. While Gutemberg Cardoso de Oliveira de Júnior and Gustavo Câmara de Oliveira were involved in the early stages as 'ex-sócios fundadores,' the company's significant growth trajectory was largely driven by the entrepreneurial spirit and technical prowess of three internet 'geeks': Ariel Lambrecht, Renato Freitas, and Paulo Veras. Their collective ambition and innovative mindset laid the foundational stones for what would become a national sensation.
Pioneering Founders: The Minds Behind 99
The true propellant behind 99's early ascent was the dedication and foresight of its co-founders: Ariel Lambrecht, Renato Freitas, and Paulo Veras. These three individuals shared a common vision and an unwavering commitment to disrupt the status quo of urban transport. They navigated the complex Brazilian market, identifying a critical need for technological intervention to improve efficiency and accessibility in public transport. Their collaborative efforts fostered a culture of innovation, allowing 99 to not only survive but thrive in a highly competitive environment. For nearly six years, this trio steered the company through numerous challenges, including intense competition from global players and periods of economic recession within Brazil, always striving to make a difference.
Strategic Evolution: From Taxis to Ride-Hailing
Initially, 99 Táxi focused exclusively on licensed taxi services, providing a digital platform that brought convenience to both drivers and passengers. However, the global ride-hailing landscape was rapidly changing, with new models emerging that challenged traditional taxi services. Recognising this shift and the need to remain competitive, 99 made a pivotal strategic move in August 2016. It launched 99POP, a new service designed to directly compete with international giants like Uber. Unlike its original offering, 99POP connected passengers with ordinary private drivers, not just licensed taxi operators. This expansion was a bold statement of intent, demonstrating 99's adaptability and its determination to capture a larger share of the burgeoning ride-hailing market. This strategic pivot proved crucial, allowing the company to expand its user base significantly and solidify its position as a major player in Brazilian urban mobility.
The Investment Juggernaut: Fueling Growth
The rapid growth and innovative spirit of 99 did not go unnoticed by international investors. January 2017 marked a significant milestone when Didi Chuxing, the Chinese transportation colossal renowned for acquiring Uber's Chinese operations, injected a substantial US$100 million into 99. This initial investment, reported to be around R$320 million at the time, provided a massive boost to 99's economic power, enabling it to expand operations and create over 250 new job opportunities in a short period. This was a clear vote of confidence from a global leader in the transport sector. The momentum continued just a few months later, in May 2017, when SoftBank's investment fund followed suit, investing another US$100 million into the company. By this point, 99 had nearly 400 employees, underscoring its impressive growth trajectory and its increasing influence in the market. These significant financial infusions were instrumental in scaling 99's technology, expanding its market reach, and solidifying its operational infrastructure, paving the way for even greater achievements.
Local Impact and Public Service
Beyond private sector growth, 99 also demonstrated its capacity to serve the public interest. In July 2017, the company secured a substantial R$50 million bid from the São Paulo City Hall. This contract allowed 99 to utilise its application for the transportation of public employees within São Paulo, a key initiative for reducing municipal costs championed by then-Mayor João Doria. This public sector endorsement not only validated 99's reliability and efficiency but also showcased its versatility in addressing diverse transportation needs, from individual commuters to large-scale institutional requirements.
The Unicorn Status: Didi Chuxing's Acquisition
The culmination of 99's meteoric rise came in January 2018. Didi Chuxing, already a significant investor, completed its acquisition of 99 in a move that sent ripples across the global tech industry. While the exact figure was not officially disclosed by the companies, reports from journalists indicated a staggering valuation of US$1 billion. This acquisition was not merely a business transaction; it was a landmark event. It officially crowned 99 as Brazil's first 'unicorn' startup – a coveted title given to privately held companies with a valuation exceeding US$1 billion. This achievement was a testament to the founders' vision, the team's relentless execution, and the immense potential of the Brazilian tech market. The acquisition by Didi, a direct rival to Uber on a global scale, further solidified 99's position as a major player and marked a pivotal moment in the history of Latin American startups.
Beyond 99: The Founders' Next Chapter
The acquisition by Didi Chuxing, while a monumental success for 99, also marked a natural transition for its co-founders. Ariel Lambrecht, Renato Freitas, and Paulo Veras, having steered the company through its formative years and its journey to unicorn status, departed from their executive roles. Their departure was a reflection of the company's 'professionalisation' and growth, where the founders, with their entrepreneurial spirit better suited to building from the ground up, found themselves ready for new challenges. Paulo Veras, the most veteran of the trio, took on a new role as an independent board member at B2W, a prominent e-commerce company in Brazil that owns brands like Submarino and Americanas.com, continuing to contribute his strategic insights to the broader tech ecosystem.
Yellow: A New Ride-Sharing Vision
Ariel Lambrecht and Renato Freitas, however, quickly embarked on their next entrepreneurial adventure. Alongside Eduardo Musa, the former owner of the bicycle brand Caloi, they co-founded Yellow, a groundbreaking bicycle-sharing company. Yellow distinguishes itself from traditional bike-sharing services that rely on fixed docking stations. Instead, it employs a 'free redistribution' system, allowing users to pick up and drop off bikes at virtually any location, offering unparalleled flexibility. This model, already tested in parts of Europe and China, resonated with Ariel and Renato's passion for tackling 'big and difficult problems' like urban mobility. They observed the effectiveness of bicycles in navigating heavy traffic in areas like São Paulo's Vila Olímpia, near a former 99 office, and saw an opportunity to provide a novel solution.
The Yellow team meticulously studied international examples, both successes and failures, to refine their service. They addressed common concerns, such as the potential for theft and vandalism, by designing robust, purpose-built bicycles. These bikes are equipped with embedded GPS, solid tyres to prevent punctures, proprietary wheels to deter theft (as they don't fit other bikes), non-removable saddles, and a sturdy steel frame with no significant scrap value. Ariel emphasised that technology is paramount, followed closely by the infrastructure of the bicycles themselves. The founders brought their extensive experience from 99, particularly in technology and user experience, while Eduardo Musa contributed deep industry knowledge from his background with Caloi. This combination of skills and experience instilled confidence that Yellow could succeed in the challenging São Paulo market.
Yellow was slated to commence operations in São Paulo in July (as per the original article's timeline), with an ambitious plan to introduce 20,000 bicycles initially, eventually expanding the fleet to 100,000 to serve the entire capital, including its peripheral areas. The company aimed to offer pricing below that of public transport, which in São Paulo was around R$4.00 for buses and metro, making it an accessible option for many. Payment methods were designed to be inclusive, potentially accepting options like Brazil's 'Bilhete Único' public transport card, credit cards, and even partnerships with telephony operators. The ambition for Yellow was clear: to replicate, or even surpass, the success of 99, potentially becoming another 'unicorn' in the making, following the impressive example of companies like Mobike in China.
Overcoming Adversity: A Founder's Perspective
Renato Freitas reflected on the journey, stating, 'During those five years, we had many ups and downs. If there's one reason we managed to become a unicorn, it's that in the low moments, we had to fend for ourselves even without money, and we managed to emerge stronger from that period.' He recounted a particularly challenging time around 2016 when Uber had gained significant traction in Brazil, and 99 was struggling to secure further investment. 'We adapted, we changed, we pooled what we had and said, 'let's do what's necessary to move forward.' We came out stronger, launched 99POP, and managed to turn the tide, to the point where Didi invested in us and then decided to buy the entire operation.' This anecdote perfectly encapsulates the resilience and strategic agility that defined 99's journey to the top.
Key Milestones of 99's Journey
| Year/Month | Event | Significance |
|---|---|---|
| 2012 | 99 Táxi Founded | Launched as an app connecting taxi drivers with passengers. |
| August 2016 | 99POP Launched | Expanded service to include private drivers, competing with Uber. |
| January 2017 | US$100M Investment from Didi Chuxing | Significant financial boost, enabling expansion and job creation. |
| May 2017 | US$100M Investment from SoftBank | Further strengthened financial position, supporting growth. |
| July 2017 | R$50M São Paulo City Hall Contract | Secured public sector contract for employee transportation. |
| January 2018 | Acquired by Didi Chuxing for US$1 Billion | Became Brazil's first 'unicorn' startup. |
Frequently Asked Questions (FAQs)
Who founded 99?
99 was founded in 2012, with Ariel Lambrecht, Renato Freitas, and Paulo Veras being the key co-founders who propelled its growth. Gutemberg Cardoso de Oliveira de Júnior and Gustavo Câmara de Oliveira were also involved in the initial stages.
When was 99 originally founded?
99 was founded in 2012, initially known as 99 Táxi.
What is 99POP?
99POP is a service launched by 99 in August 2016, which connects passengers with ordinary private drivers, rather than exclusively licensed taxi drivers. It was introduced to compete with other ride-hailing services like Uber.
Who acquired 99, and for how much?
99 was definitively acquired by the Chinese transportation company Didi Chuxing in January 2018. While the exact figure wasn't officially disclosed, it was widely reported to be around US$1 billion, making 99 Brazil's first 'unicorn' startup.
What does it mean for a startup to be a 'unicorn'?
A 'unicorn' startup is a privately held company with a valuation exceeding US$1 billion. This term signifies a rare and highly successful achievement in the startup world.
What are the 99 co-founders doing now?
After the acquisition by Didi Chuxing, Ariel Lambrecht and Renato Freitas co-founded Yellow, a bike-sharing company in Brazil. Paulo Veras became an independent board member at B2W, a major e-commerce company.
If you want to read more articles similar to Unpacking 99: Brazil's Groundbreaking Ride-Hailing Story, you can visit the Taxis category.