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• Colombian delivery app Rappi is testing pilot robot deliveries in Colombia.
• Rappi operates in several Latin American countries, and last year SoftBank invested one billion dollars into the startup.
• Deliveries are made using Kiwibot, a delivery robot from a Colombian owned company in California.
• Visit Business Insider's homepage for more stories.

Colombian delivery app Rappi is yet another company turning to robots to reduce reliance on human workers during the coronavirus pandemic. 

In addition to Colombia, Rappi operates in Mexico, Peru, Chile, Uruguay, Argentina, and Brazil. Last spring, SoftBank invested $1 billion — one-fifth of its Innovation Fund for Latin America — in the startup. It was founded in 2015, and other investors include Sequoia Capital, Andreesen Horowitz, and Y Combinator.

Colombia is currently under a lockdown set to end in May, though it may be extended again. Earlier this month, Bloomberg reported on the lack of coronavirus testing throughout Latin America, making it difficult to assess how widespread the virus is in the region.

Like in other countries, the Colombian delivery app is using robots to complete orders at a time when people are at risk of catching the virus from interacting with others. So far, the robots are part of a pilot in Medellin, with potential to expand.

Here's what it looks like. 

SEE ALSO: Nonprofits, truck drivers, food banks, and others are turning to a little-known Google Maps feature to navigate life amid the coronavirus pandemic

Rappi is using robots for deliveries in Medellin, the capital of Colombia.

Typically, Rappi works similarly to GrubHub or DoorDash, with delivery drivers picking up orders and bringing them to customers' doors.

As the coronavirus spread between people, options for contactless delivery became more popular.

Deliveries in the pilot program use Kiwibot robots, from a California company with a Medellin office.

The four-wheeled delivery robots have orange flags to call attention from walkers, drivers, and bikers.

Customers stuck at home because of the coronavirus can order and pay for meals digitally, and then last mile delivery is completed by the robots.

Robots can carry deliveries up to five square inches in size, and are disinfected between orders.

Source: The Star

Kiwibots have a stereo camera system to sense its surroundings as it moves.

The sensor system allows it to react to lights and obstacles.

Kiwibots are equipped with corner recognition, which allows them to create safe paths on sidewalks.

Kiwibot emphasized its robots ability to "seamlessly mesh into the fabric of urban landscapes," with technology like street crossing mode.

Source: Kiwibot

Rappi says it completes about 120 deliveries each day with the 15 robots in the pilot area.

Source: The Star

It plans to run the program until July, and then potentially expand to other cities.

Kiwibots have previously been used for deliveries at colleges including UC Berkeley, and Kiwibot says it has made more than 30,000 deliveries since it started in 2017.

Source: The New York Times

• As the coronavirus-led economic shutdown drags on, many investors have started counseling startups to have more than a years' worth of "runway" to avoid having to raise funding on poor terms.
• But VCs are split on how much startups should be socking away. Some have estimated 18 months oof reserves could suffice, while others say as much as 3 years' worth of runway is ideal.
• The different time frames depends on the age of the startup along with which industry they operate in. Younger startups typically have fewer overhead expenses, while older startups likely have more employees and pricey office leases.
• Also, those companies that may be able to resume work as essential services may need less cash if they are able to generate revenue.
• VCs are uniformly bracing for an economic slowdown, but the severity of downturn is still up for debate. 
• Click here for more BI Prime stories.

Startups are facing what could become the worst economic downturn in several decades, and VCs are begging them to take drastic measures to improve their chances of making it through. 

Most Americans who lived through the 2008 financial crisis will know that a savings stockpile or rainy day fund can mean the difference between surviving and thriving during tough times, but as recent studies have shown, many tech startups and VC firms don't have a similar first-hand experience; many have only known boom times and are now venturing into uncharted waters.

One thing VCs agree on is that startups need to quickly rein in growth plans — ideally as soon as yesterday — and start scrutinizing expenses. Anything nonessential should be cut or suspended indefinitely, headcount should be reduced, and pricey office leases eliminated if possible, all with the goal of extending a startup's "runway."

In Silicon Valley, runway refers to how much cash a startup has on hand to put against its operating expenses. If, for example, a startup has roughly $100,000 in monthly operating expenses and has $1 million in the bank, they are looking at a 10-month runway, assuming revenue stays roughly flat.

In the days before the coronavirus pandemic, a startup's runway dictated when it had to start looking for additional funding. Instead of cutting expenses, the popular solution was to simply put more VC money in the bank. This helped high flying startups like Uber and Airbnb expand at a breakneck pace — VC dollars kept pouring in and the companies remained unprofitable as they chased growth at all costs.

But now, VCs are saying that's no longer an option. Founders Fund general partner Keith Rabois said on a podcast recently that profitability is now being rewarded much more than high-growth. 

For startups that aren't profitable, that means hunkering down and ensuring there are enough reserves to last through the crisis.

So how long does the runway need to be? 

Many VCs that Business Insider has spoken to are advising their startups to have at least 18 months of runway. But some VCs say startups should have upwards of 3 years' of expenses saved up. 

The length of time can vary depending on the startup, one investor told Business Insider, pointing to the startup's age and industry as important factors. An early-stage company with a handful of employees and low-overhead costs might easily stretch a $500,000 seed check, whereas a growth-stage biotech startup with hundreds of employees, expensive hardware, and pricey office space might struggle to make tens of millions of dollars in funding make it through 12 months. Those that can't cut costs will be forced to fundraise with poor terms and risk the dreaded downround. 

"You can always easily dial back up the aggressiveness and risk profile if we get more optimistic visibility, but if you don't take action right away — to preserve capital, cut your burn rate, have fundamentally attractive unit economics, edit the product to make more sense in the new world order — if you don't do those right away, the opportunity to do those things and survive is probably lost forever," Rabois said in the April Talkshow broadcast.

Rabois is in the camp of pessimists, generally speaking, who think the economic downturn will not only drag on through 2020, but could eventually turn into an economic depression the likes of which could rival the Great Depression of the 1930s. He said that his VC peers are starting to rein in the freewheeling deal-making that has defined the last two decades of the Silicon Valley startup ecosystem, and are now treading cautiously. It's time that startups do the same, he said.

SEE ALSO: Lower valuations and a long wait for funding: Two top early-stage VCs dish on how they are counseling startups to withstand long-term economic uncertainty

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