diff --git a/README.md b/README.md
index d48120c..1b56086 100644
--- a/README.md
+++ b/README.md
@@ -1,26 +1,30 @@
-# Javascript Interview Starting Point
+# Closest coffee shops finder
 
-This repo will serve as a starting point for your code challenge. Feel free to change anything in order to complete it: Add modules, other tests, new packages etc.
+This app finds the 3 closest coffee shops from the user's position.
+Shops are ordered from the closest to the farthest and the distance is a number with 4 decimals. The coffee shops are fetched from an api and the user location is manually added with the following command:
 
-## Steps
-
-- Fork this repo
-- Clone your fork
-- Finish the exercise
-- Push your best work
+```
+yarn start <x coordinate> <y coordinate>
+```
 
-## Commands
+## Example input
 
 ```
-yarn run start  # Run the main script
-         dev    # Start development mode 
-         test   # Test the code
-````
-## Tools
+yarn start 47.6 -122.4
+```
 
-- Write modern JS with [babel/preset-env](https://www.npmjs.com/package/@babel/preset-env)
-- Test your code with [jest](https://www.npmjs.com/package/jest)
+## Example output
 
----
+```
+Starbucks Seattle2, 0.0645
+Starbucks Seattle, 0.0861
+Starbucks SF, 10.0793
+```
+
+## Commands
 
-Good luck!
+```
+yarn run start # Run the main script
+dev # Start development mode
+test # Test the code
+```
diff --git a/package.json b/package.json
index ee65029..7bdf0a7 100644
--- a/package.json
+++ b/package.json
@@ -22,5 +22,8 @@
     "babel-jest": "^30.2.0",
     "jest": "^30.2.0",
     "nodemon": "^3.1.10"
+  },
+  "dependencies": {
+    "@babel/runtime": "^7.28.4"
   }
 }
diff --git a/src/api.js b/src/api.js
new file mode 100644
index 0000000..2d2ce12
--- /dev/null
+++ b/src/api.js
@@ -0,0 +1,60 @@
+import { retry } from './utils.js';
+
+const BASE_URL = 'https://api-challenge.agilefreaks.com/v1';
+
+/**
+ * Fetch an auth token.
+ *
+ * @returns {Promise<string>} auth token
+ */
+export const fetchAuthToken = async () =>
+  retry(async () => {
+    const response = await fetch(`${BASE_URL}/tokens`, {
+      method: 'POST',
+    });
+
+    if (!response.ok) {
+      throw new Error(
+        `Could not fetch token from ${response.url}. Response status: ${response.status} ${response.statusText}.`
+      );
+    }
+
+    const data = await response.json();
+    const token = data.token;
+
+    if (!token) {
+      throw new Error('Token not found!');
+    }
+
+    return token;
+  });
+
+/**
+ * Fetch an array of coffee shops using an auth token.
+ *
+ * @param {string} token - auth token
+ * @returns {Promise<Array<{id: number, name: string, x: string, y: string, created_at: string, updated_at: string}>>} array of coffee shops
+ */
+export const fetchCoffeeShops = async (token) => {
+  if (!token) {
+    throw new Error('A token must be provided!');
+  }
+
+  return retry(async () => {
+    const response = await fetch(`${BASE_URL}/coffee_shops?token=${token}`);
+
+    if (!response.ok) {
+      throw new Error(
+        `Could not fetch coffee shops from ${response.url}. Response status: ${response.status} ${response.statusText}.`
+      );
+    }
+
+    const data = await response.json();
+
+    if (!Array.isArray(data) || data.length === 0) {
+      throw new Error('No coffee shops found!');
+    }
+
+    return data;
+  });
+};
diff --git a/src/app.js b/src/app.js
index 7e5b07e..fb780e6 100644
--- a/src/app.js
+++ b/src/app.js
@@ -1,12 +1,29 @@
+import { getDistance, getData, isPositionValid } from './utils.js';
+
 /**
+ * Get the 3 nearest coffee shops from the user's position
+ *
  * @param {Object} position
  * @param {Number} position.x
  * @param {Number} position.y
- * 
+ *
  * @returns {Array<position>}
  */
-export function getNearestShops(position) {
-  // code
-  
-  return [];
+export async function getNearestShops(position) {
+  if (!isPositionValid(position)) {
+    throw new Error('x and y coordinates must be prrovided as numbers');
+  }
+
+  const coffeeShops = await getData();
+
+  // extend coffee shops with distance from user position
+  const extendedCoffeeShops = coffeeShops.map((shop) => ({
+    ...shop,
+    distance: getDistance(position, { x: Number(shop.x), y: Number(shop.y) }),
+  }));
+
+  // sort ascending by distance and return the 3 nearest shops
+  return extendedCoffeeShops
+    .sort((a, b) => a.distance - b.distance)
+    .slice(0, 3);
 }
diff --git a/src/index.js b/src/index.js
index e1516e9..138fdaf 100644
--- a/src/index.js
+++ b/src/index.js
@@ -1,12 +1,23 @@
 import { getNearestShops } from './app.js';
+import { isPositionValid } from './utils.js';
 
-function main(params) {
-  const position = {
-    x: process.argv[2],
-    y: process.argv[3],
-  };
+async function main() {
+  const x = Number(process.argv[2]);
+  const y = Number(process.argv[3]);
+  const position = { x, y };
 
-  getNearestShops(position);
+  if (!isPositionValid(position)) {
+    throw new Error('x and y coordinates must be prrovided as numbers');
+  }
+
+  try {
+    const nearestShops = await getNearestShops(position);
+    nearestShops.forEach((shop) => {
+      console.log(`${shop.name}, ${shop.distance}`);
+    });
+  } catch (error) {
+    throw new Error('Failed to get nearest shops:', error.message);
+  }
 }
 
-main();
\ No newline at end of file
+main();
diff --git a/src/utils.js b/src/utils.js
new file mode 100644
index 0000000..437295f
--- /dev/null
+++ b/src/utils.js
@@ -0,0 +1,74 @@
+import { fetchAuthToken, fetchCoffeeShops } from './api.js';
+
+/**
+ * Retry callback function with exponential backoff.
+ * Used when fetching data fails
+ *
+ * @param {Function} callback - async function to retry
+ * @param {number} maxRetries - maximum number of retries (default 3)
+ * @param {number} initialDelay - initial delay in ms (default 1000)
+ * @returns {Promise}
+ */
+export const retry = async (callback, maxRetries = 3, initialDelay = 1000) => {
+  let lastError;
+
+  for (let attempt = 0; attempt <= maxRetries; attempt++) {
+    try {
+      return await callback();
+    } catch (error) {
+      lastError = error;
+
+      if (attempt < maxRetries) {
+        const delay = initialDelay * Math.pow(2, attempt);
+
+        console.error(
+          `Attempt ${attempt + 1} failed. Retrying in ${
+            delay / 1000
+          } seconds...`
+        );
+
+        // wait before next retry
+        await new Promise((resolve) => setTimeout(resolve, delay));
+      }
+    }
+  }
+
+  throw lastError;
+};
+
+/**
+ * Calculate the distance between the user and a coffee shop using the Euclidean distance formula
+ *
+ * @param {{x: number, y: number}} userPosition
+ * @param {{x: number, y: number}} shopPosition
+ * @returns {number} distance between user and coffee shop rounded to 4 decimals
+ */
+export const getDistance = (userPosition, shopPosition) => {
+  const distX = userPosition.x - shopPosition.x;
+  const distY = userPosition.y - shopPosition.y;
+
+  return Math.sqrt(distX * distX + distY * distY).toFixed(4);
+};
+
+/**
+ * Get the coffe shops data
+ *
+ * @returns {Promise<Array<{id: number, name: string, x: string, y: string, created_at: string, updated_at: string}>>} array of coffee shops
+ */
+export const getData = async () => {
+  const token = await fetchAuthToken();
+  const coffeeShops = await fetchCoffeeShops(token);
+
+  return coffeeShops;
+};
+
+/**
+ * Check if position has x and y coordinates as numbers
+ *
+ * @param {{x: number, y: number}} position
+ */
+export const isPositionValid = (position) => {
+  const { x, y } = position;
+
+  return !isNaN(x) && !isNaN(y);
+};
diff --git a/test/app.test.js b/test/app.test.js
index 86931b0..55f13ed 100644
--- a/test/app.test.js
+++ b/test/app.test.js
@@ -1,10 +1,39 @@
 import { getNearestShops } from '../src/app';
+import { getData } from '../src/utils.js';
+
+jest.mock('../src/utils.js', () => {
+  const actual = jest.requireActual('../src/utils.js');
+  return {
+    ...actual,
+    getData: jest.fn(),
+    isPositionValid: jest.fn(() => true),
+  };
+});
 
 describe('App', () => {
-  it('should return an array when the input is valid', () => {
-    expect(Array.isArray(getNearestShops({
-      lat: 0,
-      lng: 0,
-    }))).toBe(true);
+  // mock getData response
+  getData.mockResolvedValue([
+    { id: 1, name: 'shop 1', x: '1', y: '10' },
+    { id: 2, name: 'shop 2', x: '254', y: '-13' },
+    { id: 3, name: 'shop 3', x: '34.12', y: '546.23' },
+    { id: 4, name: 'shop 4', x: '-12.63', y: '3.45' },
+    { id: 5, name: 'shop 5', x: '12', y: '-3' },
+  ]);
+
+  test('should return an array when the input is valid', async () => {
+    const result = await getNearestShops({ x: 0, y: 0 });
+    expect(Array.isArray(result)).toBe(true);
+  });
+
+  test('should return an array of 3 shops', async () => {
+    const result = await getNearestShops({ x: 123, y: -43 });
+    expect(result).toHaveLength(3);
+  });
+
+  test('should return shop 1, shop 2, shop 5', async () => {
+    const result = await getNearestShops({ x: 1, y: 1 });
+    expect(result[0].name).toBe('shop 1');
+    expect(result[1].name).toBe('shop 5');
+    expect(result[2].name).toBe('shop 4');
   });
 });
diff --git a/test/utils.test.js b/test/utils.test.js
new file mode 100644
index 0000000..47c6817
--- /dev/null
+++ b/test/utils.test.js
@@ -0,0 +1,57 @@
+import { getDistance, isPositionValid, retry } from '../src/utils.js';
+
+describe('Utils', () => {
+  // isPositionValid
+  test('isPositionValid returns true for valid numbers', () => {
+    expect(isPositionValid({ x: 23, y: 44 })).toBe(true);
+  });
+
+  test('isPositionValid returns false for invalid x coordinate', () => {
+    expect(isPositionValid({ x: 'dqwef', y: 2 })).toBe(false);
+  });
+
+  test('isPositionValid returns false for invalid y coordinate', () => {
+    expect(isPositionValid({ x: 52, y: 'cdd6dc' })).toBe(false);
+  });
+
+  test('isPositionValid returns false for invalid x and y', () => {
+    expect(isPositionValid({ x: '2sd3gr', y: 'cdddc' })).toBe(false);
+  });
+
+  // getDistance
+  test('getDistance returns correct distance with 4 decimals', () => {
+    const result = getDistance({ x: 0, y: 0 }, { x: 3, y: 4 });
+    expect(result).toBe('5.0000');
+  });
+
+  // retry
+  test('retry returns result on first successful try', async () => {
+    const callback = jest.fn().mockResolvedValue('success');
+    const result = await retry(callback);
+
+    expect(result).toBe('success');
+    expect(callback).toHaveBeenCalledTimes(1);
+  });
+
+  test('retry retries until success', async () => {
+    const callback = jest
+      .fn()
+      .mockRejectedValueOnce(new Error('fail 1'))
+      .mockRejectedValueOnce(new Error('fail 2'))
+      .mockResolvedValueOnce('success');
+    const result = await retry(callback, 3, 20);
+
+    expect(result).toBe('success');
+    expect(callback).toHaveBeenCalledTimes(3);
+  });
+
+  test('retry throws error after max retries', async () => {
+    const callback = jest
+      .fn()
+      .mockRejectedValue(new Error('failed more than max retries'));
+
+    await expect(retry(callback, 3, 20)).rejects.toThrow(
+      'failed more than max retries'
+    );
+  });
+});
diff --git a/yarn.lock b/yarn.lock
index d5d44b6..52b0b15 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -878,6 +878,11 @@
     "@babel/types" "^7.4.4"
     esutils "^2.0.2"
 
+"@babel/runtime@^7.28.4":
+  version "7.28.4"
+  resolved "https://registry.yarnpkg.com/@babel/runtime/-/runtime-7.28.4.tgz#a70226016fabe25c5783b2f22d3e1c9bc5ca3326"
+  integrity sha512-Q/N6JNWvIvPnLDvjlE1OUBLPQHH6l3CltCEsHIujp45zQUSSh8K+gHnaEX45yAT1nyngnINhvWtzN+Nb9D8RAQ==
+
 "@babel/template@^7.27.1", "@babel/template@^7.27.2":
   version "7.27.2"
   resolved "https://registry.yarnpkg.com/@babel/template/-/template-7.27.2.tgz#fa78ceed3c4e7b63ebf6cb39e5852fca45f6809d"