Simple idea: Cross-platform, re-supply chains from customers back to sellers, for all things reusable. Why is it possible now?
2 Reasons:
UPI mandates for retail and online services. For the first time, this particular way of movement of money (escrow-like) is officially enabled for commercial transactions anywhere in the world [Aug‘24]. This is truly ground breaking for circular economy as it allows for leverage in case of damage/loss of shared resources - WITHOUT having a primary transaction first (like security deposits).
Cost of hyperlocal (<2km) logistics is now low enough to provide reusables-as-a-service and also be economically viable. Especially when costs of buying single/low-use products have slowly risen over the years and have gone past the costs per-use (logistics being the major cost) of most reusable alternatives possible.
While India continues to consume as it grows, it need not be by buying more things (unsustainable) but rather by increased access to things (sustainable). If there exists a time for circular economy to take shape, it is now. These are 2 insights for a forum that understands both - fintech and sustainability. Hope it helps.
Our Pitch:
We are building cross-platform, re-supply chains focussed on reusable packaging for everyday commerce. Think returning packaging from an earlier Swiggy order while receiving your BlinkIt order, for example.
Enabling Quick Commerce (QC) to use reusable packaging might just be the right stepping stone to help the larger economy in transition, towards circularity. Here’s how. By helping businesses / manufacturers / producers selling through hyperlocal online commerce (QC+FD) platforms to switch to reusable packaging they can receive back, can help Bharat significantly address problems of landfill (packaging being the major source) in phases:
Viksit Bharat free of single-use packaging awaits. There are complexities involved in getting there but we see a way. Here’s our pitch for building [ The Reusables Company ].
Yes, a Dabbawalla like business for food at first, but eventually other consumer products can tap into this network as well. It exists mostly in Mumbai today, much less or in smaller networks in rest of the country. Point is the major hurdles preventing it from scaling beyond these networks can now be overcome and for many more use cases.
Yes, circular businesses like ours are going to be operational heavy businesses.
It is as asset heavy business as necessary for control quality but it can be hybrid ownership as we grow where brands themselves own their packaging that operates through our network and customers can own some resources (esp. metal based ones like a commodity).
The existing solution of single-use is easily ‘disposable’ and from that perspective is convenient for both restaurant and consumers; but when you consider the inconveniences they bring:
On a personal level:
Chemicals leaching into food.
Experience of removing plastic tapes.
Piling up of plastic/glass based packaging after use, in hopes of reusing it eventually.
Recycling of paper based packaging is an extra step (collect, sell or giveaway as recyclable trash).
Trash generated (for those that do not/cannot reuse/recycle). Most don’t realise this is an inconvenience.
On environmental level:
Landfill and problems associated with it.
Microplastics from plastic based packaging.
Deforestation for paper packaging.
High transportation footprint (from manufacturing plant to you and to landfill) per use.
…many more
Each with their negative nth order effects that affect the customers directly. The convenience of ‘use & throw’ has a lot of inconvenience packaged into it. In comparison, reusable packaging brings a level of convenience:
Metal based packaging for food (no chemical leaching)
Easy and more premium unpacking experience.
No pile ups (as you return things with your next orders).
No trash generated.
Landfill averted.
Once into circulation locally, transportation footprint reduces with every use (and becomes local constant).
Additionally, our USP is you can return the reusables across platforms. Previous attempts at reusable packaging involved dropping off at retail locations or having to separately schedule co-ordinate pickups, inconvenience which most customers did not like (especially those who don’t care about sustainability).
Reusables involves some effort of ‘basic rinse’ after use and ‘keeping it ready to return’ (thankfully Indian households already do it as daily chore and isn’t a big behavioural jump back for most) but in context of costs of single-use packaging consistently rising over years (while costs of providing reusable packaging have been reducing) - our pricing will be competitive (and most customers care about that).
