Liftit is an e-logistics company and does not own or operate any infrastructure (e.g. distribution centers) with a physical footprint. PS5 (Land Acquisition and Involuntary Resettlement), PS6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources), and PS8 (Cultural Heritage) are therefore not applicable to the project. PS7 (Indigenous Peoples) does not apply because the project will not cause impacts to Indigenous Peoples.                                                    

This is a category B project according to IFC’s Policy on Environmental and Social Sustainability because a limited number of specific environmental and social (E&S) impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards and guidelines.

Key E&S risks and issues associated with this project include mechanisms to ensure payment of social security benefits (i.e. retirement, health insurance, workers’ compensation) by cargo delivery companies or by self-employed (freelance) drivers themselves, and road safety and risks of accidents affecting both the drivers and the public.                                                   

Identification of Risks and Impacts: Liftit is classified as a transportation company by the Colombian legislation and must regularly submit a Road Safety Plan to the Ministry of Transportation. The objective of the plan is to prevent and adequately respond to vehicular accidents.  The key risks identified by the plan are (i) the lack of preventive maintenance by vehicle owners; (ii) driving under the influence of alcohol or drugs; (iii) driver’s fatigue; (iv) the use of mobile phones while driving; and (v) speeding and reckless driving. Additional social risks identified by Liftit are (vi) the non-payment of wages and social welfare benefits by delivery contractors; and (vii) the lack of vehicle liability insurance. Mitigation measures have been identified in the plan and, as described in the section below, they are implemented accordingly in Colombia.

Liftit will review the Road Safety Plan to include policies and procedures related to the delivery of hazardous materials (ESAP action item nr. 1).  A similar risk identification process will be carried out in Mexico, as part of its expansion program. The company will also develop and document a Road Safety Plan for its operations in country (ESAP action item nr. 2). The plan will be consistent with the one for Colombian operations and comply with the relevant Mexican legislation.

Management Programs: To register under the Liftit platform, vehicle owners and drivers must upload a series of documents that certify they comply with the Colombian legislation. These include: (i) driver license; (ii) vehicle liability insurance; (iii) vehicle mechanical inspection; and (iv) payments of social welfare benefits (i.e. retirement, health insurance, workers’ compensation). In addition, Liftit requires delivery contractors to provide personal and professional references.  No specific training is required, but the company is planning to request psycho-sensometric tests for drivers in accredited centers.

Before a delivery contractor is approved, Liftit verifies that all the documentation is valid. Once the information is uploaded, the IT system automatically sends notifications to the delivery contractors eight days before a document expires. Vehicles and drivers are not allowed to operate for the company if any of the documents is missing or has expired. Most documentation must be updated annually, while certificates of payment of wages and social welfare benefits must be submitted monthly.  All these requirements are also included in the contract signed between Liftit and the vehicle owner (Contrato de vinculación de transportadores, in Spanish). Disciplinary procedures (Régimen de vetos y sanciones, in Spanish) include the termination of the commercial relationship with Liftit if driving under the influence of alcohol and drugs, the theft of merchandise, and harassment complaints, among others.

Truck owners are also required to subscribe to a GPS vehicle tracking services. The GPS platforms alerts Liftit traffic controllers if a vehicle exceeds the posted speed limit or in the event of any irregular situation. Liftit traffic controllers also monitor driving hours and alert drivers when reaching the limit. In Colombia, cargo transporters may drive a maximum of 10 hours per day.  In addition, for long distance trips, Liftit engages the services of a logistics company with more than 50 physical checkpoints throughout the country; drivers must report at the physical checkpoints located along their route. 

Besides the annual vehicle inspection required by law, drivers must submit a daily vehicle inspection checklist before a trip is authorized. Liftit will review and update the daily inspection checklist to simplify it and ensure safety criteria are adequately reflected. A vehicle safety inspection checklist will be prepared for urban trips, and a more comprehensive one for out-of-town/long distance trips. An additional checklist will be prepared for handling cargo or accessing sites that require the use of personal protective equipment (PPE). The company will ensure that criteria for vehicle acceptance and safety enforcement are spelled out in the relevant procedure.  The same approach will be implemented for operations in Mexico (ESAP action item nr. 3).  

Organizational Capacity and Competency: The Director of Operations is responsible for the implementation of the Road Safety Plan. In Colombia, all companies must subscribe to the services of a workers’ compensation insurer (aseguradora de riesgos laborales – ARL). Liftit’s ARL advises the company on its vehicle safety awareness communication strategy. Liftit regularly sends infographics to all registered drivers to raise awareness on accident prevention strategies, such as the correct use of seatbelts, driving in difficult conditions, causes of distracted driving, etc.

Emergency Preparedness and Response Plan: Liftit has response protocols in the event of an emergency. For long trips, the system will trigger an alert if the driver has not reported him/herself at the physical checkpoint within one hour of the estimated time and can’t be contacted. Liftit will report the vehicle as missing to the police and start an active search. In the case of an accident, Liftit traffic controllers will immediately contact the closest ambulance service.

Monitoring: The implementation of the Road Safety Plan and key performance indicators (e.g. rate of accidents and incidents) are reviewed monthly by a committee that includes the CEO, the HR Manager, the Director of Operations, the Delivery Supervisor and the Coordinator of Operations.                                                  

At the time of IFC appraisal, Liftit had 60 employees. 33 percent of the company’s workforce are women (44% at managerial level).

Working conditions and terms of employment – including hours of work, overtime, benefits, paid-holidays, disciplinary procedures, enrollment in the social security system – are documented in internal works regulations (Reglamento Interno de Trabajo, in Spanish), and follow Colombian labor law. The internal works regulations include policies on non-discrimination and harassment. The regulations stipulate that related complaints will be investigated by Human Resources appropriately handling confidentiality.

Occupational Health and Safety: Potential OHS risks for Lifit’s employees are limited and related to sedentary work, ergonomics and visual fatigue. Liftit will review its OHS policies and procedures (Reglamento de Higiene y Seguridad, in Spanish) to properly identify and address the risks related to the activities conducted by Liftit’s employees (ESAP action item no. 5). 

OHS risks for delivery contractors are covered under Performance Standard 1. Liftit monitors rates of incidents and accidents. Liftit started operations in 2017 and no accidents have been reported so far.                                                    

Liftit does not have resource efficiency and pollution prevention policies but, as described under Performance Standard 1, vehicle owners must submit the vehicle maintenance inspection certificate (Revisión Técnico Mecánica, in Spanish) annually. The inspection includes vehicle emissions testing. A similar requirement will be developed for Mexican operations.                                                  

Community Safety: Road safety and risks of accidents affecting both the drivers and the public are key E&S issues reviewed by IFC.  Implementation of updated Road Safety Plans in Colombia and Mexico, as per ESAP action items 1 and 2, will mitigate risks consistent with the requirements of this Performance Standard.

Security Personnel: Liftit retains the services of motorcycle security escorts when the value of the merchandise to be transported exceeds a pre-determined amount. Escorts are unarmed and blend with the regular traffic; in the event of a theft they immediately notify their central station who alerts the police. Private security companies must comply with BASC-Business Alliance for Secure Commerce requirements.                                                

The public can contact Liftit through a chat-line and phone number posted on its website, which is the primary channel to receive and record any complaints and grievances that the customers, or any community member may have about the drivers, service quality or safety. Liftit will maintain records of grievances presented by customers, drivers and community members through any communication channel, to identify and implement corrective and preventive actions (ESAP action item nr. 4).                                                      

 Contact Person: Filipe Betancourt

Company Name: Liftit SAS

Address: Bogota, Colombia, Carrera 17a #127a-58

Email: hola@liftit.co

Phone: +57 (031)716-2808