Dear reader,
Mobility has blossomed into a category rich in depth and diversity of startups.
At The Realistic Optimist, we have covered startups tackling different facets of it:
- Neo-manufacturers bringing to life localised vehicles e.g. Kiri EV
- Fintechs enabling access to vehicle ownership and services e.g. MAX, Crabi, Gigmile, Mbay Mobility
- Ride-hailing marketplaces matching drivers with consumers and businesses e.g. Garibook
- Transportation services reinventing commuting e.g. BusCaro, Swvl, E-Moti
- Software and demand aggregation platforms for transport operators e.g. Jatri
- Deeptech to train self-driving vehicles e.g. Artificio
- Fleet management for logistics-heavy businesses e.g. eWAKA
The focus of this article, Soutag, addresses a new facet we have not previously covered. It also marks the official start of the RO's new Head of Interviews, James Mahon, who will gradually take ownership of this format.
Biography
Hélder Paiva is the co-founder and CEO of Brazilian startup Soutag.
Soutag provides professional drivers in Brazil with discounted fuel prices through an app, in partnership with affiliated gas stations.
Founded in 2023, Soutag has processed over R$1B (Brazilian Reals) in fuel gross merchandise value (GMV).
What formative experiences led to you founding Soutag?
Both myself and my co-founder (Rafa Macedo) have prior entrepreneurial experience.
I previously founded a restaurant chain. I also worked as an independent consultant for fuel retailers.
Rafa has spent decades in the fuel retailer industry, hailing from a family of gas station chain owners, a chain he later took control of.
Restaurants and gas stations are low margin businesses. You must turn a profit fast to survive, with minimal equity funding available to subsidise working capital gaps.
It’s influenced how we have built Soutag, like achieving profitability within a year of founding with a business model that generates cash fast. We also are able to connect with the gas station owners we serve, having operated in the same capital constrained environments.
What does Soutag do?
We operate a double-sided marketplace connecting price-sensitive professional drivers (app drivers, taxi drivers, self-employed delivery drivers) with fuel retailers (gas stations) via dynamic pricing.
Drivers get discounted fuel prices through our free app. Partnered gas stations get more sales. Both parties benefit from custom pricing.
What did your MVP look like?
The concept for Soutag was validated via the cheapest means we could come up with, which was hardware-centric.
We placed smart tags sourced from China on the windscreens of drivers’ cars. Drivers would arrive at a gas station we’d partnered with that had agreed to a discounted price. The gas station attendant would use a machine with NFC technology to verify the windshield tag. Then, a card would need to be placed on the gas pump to read it and deliver the discounted pricing.
How has Soutag’s offering evolved since?