UK-based Food Sharing App Targets $1 Trillion Annual Wastage

UK-based Food Sharing App Targets $1 Trillion Annual Wastage
Half the food wasted in the UK is thrown away at home. In total, a third of all the food produced in the world is wasted. It represents an annual value of $1 trillion and it’s one of our planet’s greatest problems. There are millions of people who don’t have enough, deforestation to create grazing and arable land afflicts ecosystems for farmers to produce too much, and animal methane gases contribute to global warming and climate change.

Co-founders Tessa Clarke and Saasha Celestial-One knew each other from their MBA studies at Stanford Business School where they became firm friends. They hatched an idea to start OLIO in 2015, an app to connect neighbours with each other and with local businesses so surplus food can be shared, not thrown away. This can be fresh or packaged food nearing its sell-by date in local stores, spare home-grown vegetables, bread from a local baker, or the groceries left in the fridge when people go away.

They launched the OLIO app in 2015 and now have almost 25,000 volunteers operating in over 50 countries. I met Tessa recently and she kindly agreed to share her story with me.

How did you first test for public support of your idea to engage the crowd in a breakthrough solution?

We carried out some market research using SurveyMonkey and we found that 1 in 3 people are “physically pained” about throwing away good food. We then set up a WhatsApp group with 12 people and found they were very enthusiastic about sharing food that would otherwise go to waste. From that we received incredibly valuable feedback and suggestions.

With the support of our first investor we built the MVP (minimal viable product) version of the app. And working like crazy, exactly 5 months after we’d incorporated the company (we were Mums on a mission with no time to spare!), we launched the app in the App Store on 9th July 2015, quickly followed by Google Play three weeks later. The very first version of the app was extremely basic, and could only be used in five postcodes in North London. But that didn’t matter, we were live and ready to bring food sharing to the world!

 

And what’s your growth been like since those early days?

We’re absolutely thrilled that we’ve now got 750,000 users plus 25,000 brand Ambassadors (volunteers) all over the world. And together they’ve shared over a million portions of food – which is the environmental equivalent of taking almost 3 million car miles off the road!

How do you cope with different food safety regulations on person-to-person food exchange in all these different countries?

Food safety and regulation is something we take very seriously. All the food redistribution undertaken by our “Food Waste Heroes” – who collect unsold food from local food businesses and share it via the app – is governed by an incredibly robust Food Safety Management System. And the neighbour-to-neighbour sharing is covered in our standard T&Cs.

You’ve already mentioned a “first investor.” What was it like, raising funding to be able to dedicate yourselves to OLIO and make it grow?

Our very first investor was Simpleweb, who are a development agency in Bristol, and they absolutely loved the problem we are trying to solve and so wanted to partner on it. That enabled us to get the first version of the app built. Since then we’ve raised three rounds of equity financing, and each one has been very different – our latest round was a $6m Series A round led by Octopus Ventures this summer. Fundraising is always challenging, but incredibly rewarding once completed. It’s been quite a sobering experience being a female-founded startup team – because only 2% of VC funding last year went to female founded startups.

How does OLIO make money?

OLIO generates revenues by charging businesses for the service we provide via our Food Waste Heroes Programme to enable them to have zero edible food waste stores. Businesses are increasingly recognising that it’s no longer acceptable to be throwing away perfectly good food – their customers don’t like it, and their employees don’t like it either.

Is there ever a clash between volunteers helping for free and the OLIO founders want to make money?

Our volunteers understand that OLIO needs to have a sustainable business model, and therefore generate revenues, to be able to continue to exist and have the incredible impact we’re having. So they’ve been some of our biggest supporters as we’ve started to monetise.

Your growth rate has been really impressive. What marketing have you used?

Our Ambassadors have definitely been at the heart of our growth. We’ve also had some amazing bursts of new users whenever we’re featured on television, or in the App Store. Press has been useful for reinforcing the brand and credibility although it doesn’t drive immediate downloads. In terms of paid advertising, Facebook and Google have been most effective.

What are your plans for the future?

We have an unashamedly bold ambition for the future – in 10 years’ time we want a billion people to be using OLIO. When we raised our Series A funding this summer, it enabled us to double the size of our team and so now we’re really accelerating our growth.

Thank you Tessa, your story is so inspiring.

If you would like sign up to OLIO and start sharing recyclable surplus food then please go to their website now to download the app.

Crowdsourced Marketing Makes a Big Impact and Saves a Packet

Crowdsourced Marketing Makes a Big Impact and Saves a Packet
One of the biggest recent trends in marketing is crowdsourcing. In the last decade, 85% of the top global brands have used it in some form.

In pre-digital days it was pretty much restricted to publicity stunts or involved celebrities, or both, and relied on the media gatekeepers – print and broadcast media owners – to be a vital part of the process. Media owners were the b2b crowd that a brand owner sourced, and the media provided the b2c link. Mass digital connectivity has widened the net, and crowdsourced marketing can skip the media owner involvement and still achieve phenomenal results.

Today’s digital connectivity enables all of us to publish online material, if we want to, and social media spreads the word to encourage direct access to content created personally or in-house by brands. It also means people can respond to brand owner call-outs with an array of written content, photos and videos. This means crowdsourced marketing can involve consumers voting on or even submitting ideas for marketing campaigns and advertisements. A well-known example is the Doritos “Crash the Super Bowl” contest in which consumers submitted homemade Doritos commercials for the chance of their work being shown during the American Football end-of-season Super Bowl. It ran for 10 years.

Sticking for the moment with crowdsourced marketing meaning generating editorial media coverage through newsworthy publicity stunts and appearances by celebrities, Richard Branson is very good at it. He continually makes himself a news item to promote one Virgin brand or another. The example below is a press conference for the launch of Virgin Voyages, cruise ship holidays. The media pick up on a lot of what he does, and he also uses his own social media to communicate directly with audiences.

Crowdsourced Marketing Makes a Big Impact and Saves a Packet

Examples that relied on traditional media to leverage the message include the now defunct UK holiday company Club 18-30 (which catered to that age group) that used to get high levels of press media coverage by putting up risqué posters near to newspaper offices where they were bound to be seen by journalists: “Wake up at the crack of Dawn… or Lisa, or Julie” was one example. I created a case study about this back in the Noughties for the out-of-home contractor Clear Channel.

This and other similar poster executions won advertising industry awards for the creative ad agency, Saatchi & Saatchi, even if public outcry against indecency – ironically fuelled by the newspaper coverage they were designed to achieve – resulted in them having to be taken down early. But they had done their job.

Founder of the Ultimo lingerie brand Michelle Mone is another business person/celebrity who created her own media moments in the spotlight.

Crowdsourced Marketing Can Make an Impact and Save a PacketOne incident, when she was still a cash-strapped startup just beginning to get the first shops to stock her products, involved hiring a dozen actors. They pretended to be plastic surgeons and demonstrated outside the Selfridge’s department store to try and prevent them stocking her cleavage-enhancing underwear.

They claimed they would be out of work if too many women decided to wear an Ultimo bra rather than have surgical implants, and blocked the road, the world famous Oxford Street. Their morning picketing was shown on lunchtime television news and Selfridge’s sold what was meant to be six months’ of stock in five hours. It’s all in her book, My Fight To The Top.

Up-to-date, and on a far more serious theme is an example from South Africa. Francois Du Preez, Digital Creative Director of Grey Advertising in South Africa presented a case study at the Crowdsourcing Week 2016 Global Conference. Dog fighting is an unsavoury and illegal activity in South Africa that causes many animals to suffer, not just the ones that do the fighting, and it’s a multi-million Rand industry when related gambling is taken in to account.

Crowdsourced Marketing Makes a Big Impact and Saves a PacketCriminals steal domestic small dogs to feed to pitbulls being trained to fight, to give them the taste. But over time a majority of the public had tired with and disengaged from the regular media coverage of tattered, battered and mutilated dogs. The ad agency created a mobile billboard that appeared to publicise a dog fight, Nitro vs Thor, with a website URL and a phone number. Social media exploded within one hour of it driving around affluent suburbs of Johannesburg. It was reported on radio news and in the next editions of newspapers. Angry people found out the website had been registered by Du Preez and some came looking for him.

The website was taken down after just  three hours in which time it had received more attention than they had ever anticipated. Against this background of anger they ‘came clean’ that the advertised dog fight was a stunt and then got even more media exposure for supposedly trivialising the distasteful and illegal activity. The issue was suddenly important once again to many people.

The amount of media space and broadcast airtime costed as media advertising exposure was valued at Rand 1.7 million. The mobile ad had cost Rand 7,000, allowing a claimed ROI factor of 240 times the initial outlay. But not only had massive media coverage been achieved for such a tiny sum, the mobilisation of the crowd had made it so much more effective than if a real budget had been used with a regular “this is bad, let’s all help put a stop to it” style of message.

In the digital-era of personal connectivity, newcomer craft beer brewer Brewdog claimed to be worth £1.8bn in January this year (based on some corporate investment deals), and has vowed to never spend a penny on paid-for advertising. Though they happily hired and branded a helicopter to make a video of parachuting “fat cats” (stuffed toys, I hasten to add) in to the City of London to generate news coverage of the fact that they were crowdfunding. They went on to raise their first £5m through equity crowdfunding without the services of any expensive “fat cat” investment advisers.

Crowdsourced Marketing Makes a Big Impact and Saves a PacketA current example is the Royal Mail which has installed four musical post boxes in the run-up to Christmas. When cards and letters are posted they trigger a sensor that plays a loop of snippets from Christmas tunes and reindeer sleigh bells.

There is just one in each of Scotland, Wales, Northern Ireland and England. The one in England is in Greenwich, the historic area on the south side of London’s River Thames and a UNESCO World Heritage Site, very popular with tourists.

It has been mentioned in social media by many people and organsations including numerous bloggers and local businesses in the area, reported in local and national newspapers, on BBC tv news and by the advertising industry platform Campaign.

The Royal Mail are using the added media coverage to raise awareness of this year’s last posting dates. There, I’ve written about it and you’ve read about it, it works.

Crowdsourced marketing offers huge benefits for businesses. Crowdsourcing saves on marketing costs because either consumers are happy to submit their ideas for free in exchange for seeing them used in the marketplace, or because bloggers, journalists and editors fall over themselves to create engaging content featuring stunts and/or celebrities to entertain their audiences. Plus these days there is direct consumer-2-consumer connectivity. It’s a great way to get affordable coverage of a crowdfunding project.

If you’d like to discuss you own ideas for a crowdfundng project and to see how I can maybe help you please email me at [email protected] Don’t forget, a dream isn’t a plan and hope isn’t a strategy.

Day One of a global crowdsourcing conference in London focussed on crowdfunding

On April 12 the historic Regent Street Cinema in London witnessed the first full day of the 2016 Crowdsourcing Week Global Conference which focussed on crowdfunding. Here is a recap of the day, writes independent crowdfunding adviser Clive Reffell.

Crowdfunding within crowdsourcing
Conference organiser Epi Ludvik Nekaj of Crowdsourcing Week and the first speakers of the day set the scene. Affordable, mass communication technology enables Epihigh levels of personal connection and interactivity. This has caused a clear disruption to previously accepted ways of appreciating what’s around us and how we access what we want or need. Through C2C networking we can increasingly find what we want without having to go to an established B2C provider – whether it’s goods, services, entertainment or information. And not only are we beginning to increasingly appreciate that the planet’s resources are finite and at risk, but also change our behaviour to reflect this.

A modern Old World generation is happy to have access to what it wants or needs without the proviso of personal ownership. Hence the ‘sharing economy’. Accommodation and travel are the largest sectors of the sharing economy. We share spare bedrooms on Airbnb – an organisation that after just four years has access to more rooms than Hilton Hotels – and empty seats in our cars through Zipcar, LiftShare and BlaBlaCar. And through equity and loan crowdfunding people with adequate disposable incomes are willing to invest in or lend it directly to others who want a chance to create their own business and realise their personal potential.

Panel session: "Can banks afford to ignore crowdfunding?"
Panel session: “Can banks afford to ignore crowdfunding?”

Crowdfunding and banking
In the meantime, traditional sources of business funding from banks that are no longer perceived as trustworthy are increasingly restricted by regulation and compliance. Tech entrepreneurs in their 20s are developing financial tools that banking C-Suite bosses don’t even understand, let alone have the vision to steer their organisations to a future where they may embrace some of them.

Emily Mackay, CrowdsurferSo the supply of funding for startups and SMEs continues to shift. Crowdfunding supported the launch of over 4,000 UK businesses in 2015, said Emily Mackay, CEO of Crowdsurfer.

Crowdfunding data
The demand from entrepreneurs for better crowdfunding information to increase their chances of success has led to a raft of companies collecting, analysing and providing data on the crowdfunding industry. As well as Emily Mackay of Crowdsurfer, Barry James of The Crowdfunding Centre  and Modwenna Rees-Mogg of Crowdrating were also on stage during the day.

Crowdfunding platforms
Crowdsurfer estimates there are almost 1,800 crowdfunding platforms around the world. Between them they offer opportunities for backers to support businesses in a wide range of industry sectors, and for platforms such as Ethex to specifically provide investors with ethically sound opportunities. The site allows people to “invest in businesses that are changing the world for the better,” said Sarah Flood, and it is the top social investment platform in Europe with over £30m invested so far.

Equity crowdfunding platforms were represented by CEO Goncalo de Vasconcelos of SyndicateRoom. To him, the most important aspect is not the money that crowdfunding pulls in but how much is going to be paid out to investors. If the source of the money dries up because investors get disappointed or short-changed then it’s all over for everyone. His own platform reassures investors with a stringent selection of projects they host so that only two out of 77 projects funded on SyndicateRoom have so far ceased trading. The average failure rate among all new businesses is more like 90%.

Fanuel Dewever, Crowd AngelsWith a twist on donations crowdfunding for money, Fanuel Dewever’s Belgian platform Crowd Angels enables projects to directly ask for the goods, services and human resources they require. He identified the biggest reason for projects failing is the lack of a clear demonstrable need for what’s being asked for that will allow backers to feel they have made a contribution to something significant. Issues such as easing a short-term cash flow problem are certainly important to small business owners but it does not get backers queuing up to part with their money.

Who uses crowdfunding?
Fr Frank Haydru of The VaticanThe companies that use crowdfunding are also increasingly diverse. Through the launch of their app Patrum even the Vatican uses crowdfunding to raise money to restore its historic architecture and many of its art treasures, and we heard from Father Mark Haydu (above left) on how this 2,000 year old business approached and handles it.

Christian Smith, TrackRChristian Johan Smith of the California-based TrackR raised over $2m on Indiegogo in exchange for their tracking devices for people to trace and retrieve lost, stolen or simply misplaced items.

Eric Partaker, Chilango_01Eric Partaker of Mexican food restaurant chain Chilango has raised a total of £5.5m, first through a mini-bond that offered interest repayments of 8% p.a. and raised £2.1m and then through an equity round that raised £3.4m. But it wasn’t plain sailing. After the success of their first two outlets the third and fourth ones bombed – at one stage the company was seriously close to going under.

It isn’t easy
Crowdfunding may sound easy when large figures like these are bandied around, though everyone involved with the conference agreed that successful crowdfunding requires thorough preparation and extremely hard work. It isn’t charity, it certainly isn’t easy money, and about 3 in 4 projects fail to reach their target funding level.

If you want to improve your chances of success with the benefit of some professional marketing input, I am an independent crowdfunding adviser. Click here to e-mail me or here to see my website for Comanche Communications & Marketing.