Amazon has partnered with Favela LLog, a subsidiary of the Favela Holding group, to enhance its delivery network in Brazilian favelas. This expansion includes the establishment of six new São Paulo delivery stations in areas such as Capão Redondo, Aricanduva, Brasilândia, Grajaú, Heliópolis, and Carapicuíba.
Navigating Brazil’s complex and densely populated favelas poses unique logistical challenges for delivery services. These new hubs play a crucial role in the final stages of the delivery process.
The Amazon initiative, unveiled on Tuesday, extends delivery services to peripheral regions, including on Sundays and holidays. Paraisópolis, one of Brazil’s largest favelas with a population of 100,000 residents, will be the first community to benefit from this service. Amazon states a goal to enhance accessibility for consumers in areas previously underserved by logistics networks primarily focused on major urban centers.
Presently, Amazon operates in seven regions within the state of São Paulo, with dedicated delivery stations to cover peripheral areas. For instance, the Paraisópolis station, inaugurated in August 2022, can handle up to 2,000 packages per day.
Rafael Caldas, head of Amazon Logistics in Brazil, underscores the positive impact of the initiative on peripheral regions. He said the company aims to create “a positive influence in these areas, contributing to job creation and bolstering the overall economy. This translates into more opportunities and, consequently, greater inclusion.”
To meet growing demand and maximize social impact, the transport company will collaborate with Cufa, an NGO that works in Brazilian favelas. Existing Cufa projects include Recomeço (Restart), which aims to reintegrate former inmates into the Brazilian job market.
According to a 2023 report by market research institute Data Favela, the number of residents in Brazilian favelas has doubled in the past decade. The annual income of favela residents is estimated at BRL 202 billion (USD 42 billion), according to Data Favela.
For major corporations, Brazilian favelas have long presented both challenges and opportunities. One notable effort to improve things is logistics startup Favela Brasil Xpress, founded in Paraisopolis in 2021.
“We put favelas’ zip codes on the Brazilian e-commerce map. The company came to revolutionize the delivery system in these communities,” chief executive Giva Pereira told The Brazilian Report.
Favela Brasil Xpress gained recognition by winning an urban logistics challenge promoted by the British Consulate in São Paulo. This achievement drew the attention of Brazilian e-commerce giant B2W, and evolved into a collaboration with the startup.
Currently, Favela Brasil Xpress partners with 15 major companies, including retail giant Americanas, and is responsible for approximately 40,000 deliveries per month in seven communities.
The initiative is part of G10 Favelas, a coalition of leaders and entrepreneurs dedicated to favela development. Plus Codes, a G10 project, involved a partnership with Google to provide geolocation codes for favela streets with an accuracy of 3 square meters.
The project was launched in May 2022 and distributed digital addresses, free of charge, to individuals not previously represented on urban maps. In Paraisópolis alone, over 14,000 Plus Codes were created. In May of this year, the project won the Mobile Time award in the category of ‘innovation with social or environmental impact.’
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