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“I am happy with what I have created and do; I live it as an exciting adventure, and I know it has a lot of room to grow,” says the CEO of Grupo Rua, Diego Sayanes. The company’s perspective is to “expand to 20 countries” in the next five years, he anticipates.
He had never considered entrepreneurship. He did it after losing his job and exhausting his unemployment benefits in 2011. His idea? To create a service company that would compete with his previous job, with a focus on quality. It took him eight months to get his first client. Today, the group has 10 business verticals, five spin-offs, and a presence in England, Paraguay, and Argentina. They have around 70 corporate clients, close to 3,000 suppliers, and have executed over 1.5 million services. Their business grows between 30% and 40% annually, and they project to expand to 20 countries on all continents by 2028. He was born in Montevideo 42 years ago, is married, and has two children. In his free time, he enjoys reading and spending time with his family and friends.
Rua Asistencia emerged after you lost your job. How much of it was entrepreneurship by opportunity and how much by necessity? The reality is that I didn’t want to be an entrepreneur. I always wanted to be a writer, studied law, and worked as a manager in a multinational company. I was very comfortable, in my comfort zone, and didn’t think about leaving. But after seven years of working, there was a reform, and I got laid off. The next day, I started looking for a job because I couldn’t be without income. I thought I would be somewhere else within a month, initially looking for similar positions. But a month passed, then two, and I lowered my expectations because my unemployment benefits were running out. The sixth month came, and it ended. So, I realized that I had to do something, decided to capitalize on what I had learned, and started a company to compete with the one I had worked for. I met with someone in Lagomar, who was a provider of mechanical assistance with his company Red Uruguaya de Auxilio. I told him I had been looking for a job for months and, since I hadn’t found one, I wanted to start a company. He asked, ‘What do you need?’ I replied, ‘A desk, a phone, and $15,000 a month.’ It was completely absurd. But he accepted, and Rua Asistencia was born. He is Óscar Churi, my partner in Rua Asistencia. I made a business plan in a notebook, designed the website, and the business verticals for a service company. The first client came after eight months; it was Vigilia, a companion service that hired ambulance transfers. Then RSA asked us to do repairs for their home insurance policyholders. The beginning was not easy.
How did you get those first clients? Through the trust I provided from the beginning. I always worked with integrity, being polite and efficient. Another detail is that we broke with the paradigm of service quality by investing in monitoring that guarantees the customer’s experience from start to finish. Additionally, we launched innovative home services that aimed at people’s will rather than an incidental event, which is what insurance assistance is usually associated with. For example, the installation of appliances such as air conditioners.
When did you reach the break-even point as a business? In 2013.
How many business verticals does the company have today? Around 10, which translate into about 60 services. We have around 70 corporate clients, including banks, cooperatives, healthcare companies, entertainment companies, and more. In Uruguay, we indirectly provide coverage to over 600,000 people, plus another 150,000 directly. In total, we have provided over 1.5 million services. Additionally, the group consists of several spin-offs: My Global Assist, travel assistance for companies and end customers; Mashkady, a company offering discounts and benefits in gastronomy, leisure, and clothing, with over 300 affiliated locations throughout the country; Onírica, a digital marketing agency; Coopera Innovation Hub, the group’s technological innovation hub; and ServiciosYa, a home services app.
How much does the company grow? Last year it was close to 40%. And the previous four years were around 30%. For this year, the projection is to exceed 40%.
Of these businesses, which are the main ones in terms of revenue? Fortunately, today we do not depend on one in particular. We have diversified because when we had it concentrated in one client or one vertical, it was risky. And while mechanical assistance represents a significant portion of our revenue, its contribution to the group is low. Other verticals may not generate as much revenue but yield more profits. Regarding regions, in Uruguay, 60% is in Montevideo, and the rest is in the interior.
Are the spin-offs already independent of the group? Yes, for example, Onírica is managed by an independent team, and even though we coexist in the same building, at the corporate and profitability level, it is independent. However, Rua accounts for 70% of the group’s revenue. In total, there are 250 people working directly in the latter, and we have over 3,000 providers involving nearly 9,000 people. Of these, 30% consider Rua as their main source of income. Our goal is for more and more people to have access to quality services. We work in a collaborative economy, and through these business models, we achieve improvements in people’s lives in all the countries where we operate.
What are your main clients’ industries? The main clients are financial institutions, including cooperatives, banks, and insurance companies.
The company is already in three countries, England, Paraguay, and Argentina. Why was England the first? In 2019, I went to a major technology fair in that country and met with people from the British government who talked about the entrepreneurial ecosystem and mentioned the Global Entrepreneur Program, a kind of incubation they offer to entrepreneurs from other countries who have had some success and are considered to have global potential. I told them about Uruguay and Rua. They referred me to the program manager for Latin America. I met with him, told him about the company, and a month later, they informed me that they had chosen me. So, I arrived with ServiciosYa as Service City and later with Rua Assistance. I have now put the former on hold and am focusing on the latter. In England, we grew with mechanical assistance and home assistance, as well as some legal and financial advice. It is essential to consider that it is a country with very high costs and a highly competitive market. We are now evaluating changes in Service City.
Today, these markets represent 30% of the business. When do you estimate that they will surpass Uruguay’s revenue? Over the next five years, Uruguay will become the smallest subsidiary. The other countries have more room for growth. In that period, the plan is to be in 20 countries. We have already incorporated the company in Spain, and in April, we will launch the first services there. In May, we will start in Colombia, in Bogotá, with Rua Assistance, and then in Mexico, Peru, and Bolivia. And by 2024, we are looking to reach Brazil.
Are you looking for investment for this expansion? So far, growth has been organic, but we have it planned at some point. But not for these openings; it will be with our own investment. Why? We haven’t needed it. And strategically, we are waiting for the right moment because we are also looking for an investor who doesn’t just want short-term financial returns. I would accept one who shares the vision of having ‘Rua embassies’ in these countries.
Have you been offered to buy the company? Yes, but I haven’t even listened to the offers. I am happy with what I have created and do; I live it as an exciting adventure, and I know it has a lot of room to grow.
What sets your company apart from other similar businesses? The idea is that clients find in Rua Asistencia what they need to add value to their proposal. We want to be not only their strategic partner but also providers of quality service. Some clients have been with us from the beginning; the average length of our relationships is seven years.
The issue of human resources is a challenge for companies. What strategy do you have to attract and retain talent? We have strong values like always giving our best while maintaining a cheerful and fun environment. Being passionate and consistent in achieving results. It’s a challenging balance. For many years, we had a happiness management department in the company, and we have comprehensive human capital management. We see people as a whole, with their personal lives because we want them to be well here and outside. We have offered all our services to employees, such as legal assistance, or even allowing them to bring their children to work if needed. And we also encourage them to develop because the company is constantly evolving. It’s beneficial for both people and the company.
With Innovation Hub, you have experience with entrepreneurs. How do you evaluate the quality of the ecosystem? It’s very good; there is a lot of energy, and the government has contributed a lot, as well as accelerators, incubators, and universities. More than 100 startups have passed through the hub, and half of them were on the right track. We have worked a lot with several that could generate good synergy with the group, but we also look for companies of different profiles. And we have invested in about four startups.
What are the company’s next plans? We will launch a new spin-off related to security but with a disruptive value proposition that will revolutionize the market, and I see the group with a presence on all continents.
