OpenIDEO is an open innovation platform. Join our global community to solve big challenges for social good. Sign Up / Login or Learn more

Pricepally.com - food sharing economy e-commerce platform

My vision is an Africa where there is reliable access to sufficient quantity of affordable, nutritious food in its urban cities.

Photo of Luther Lawoyin
8 0

Written by

Lead Applicant Organization Name

Pricepally Nigeria Limited

Lead Applicant Organization Type

  • Small company (under 50 employees)

Website of Legally Registered Entity

www.pricepally.com

How long have you / your team been working on this Vision?

  • Under 1 year

Lead Applicant: In what city or town are you located?

Lagos city

Lead Applicant: In what country are you located?

Nigeria

Your Selected Place: what’s the name of the Place you’re developing a Vision for?

Lagos State, a city in the southwest of Nigeria has a total area of 1,171.28 km ^2

What country is your selected Place located in?

Nigeria

Describe your relationship to the place you’ve selected.

Lagos is home to me and over 20 million other people, a packed megacity with streets teeming with life and the buzz of hustle. It is a melting pot of cultures, a city where all tribes in Nigeria and a lot of nations of the world are represented. Lagos means a lot of things to different people but to most people, Lagos is the land of opportunities, where dreams and fortune can come true, it is one of the reasons why it has the highest rural to urban migration indices in the world.

I have lived most of my adult life in Lagos and I owe many cherished moments to this city, I have started and grown three profitable businesses in this city, I met my wife in this city and I have a good network of family, friends and business colleagues living in this city. It is a city I am connected to in so many ways, although it is full of its own peculiar challenges, it doesn't change my love for the city. 

The diversity of people living in harmony, the cuisine, entertainment and nightlife of Lagos are like no other, it is indeed a city I will love to see grow to become better, Lagos could do with a lot more basic infrastructure to serve the teeming population. In Lagos, the entrepreneurial spirit is contagious, every young man or woman in Lagos relates to and prides in the hustling spirit. It is one of the things I love the most about the city.

Lagos is strategic and critical to the growth and survival of Nigeria as well as that of west Africa. The city remains the economic nerve centre of Nigeria and Africa because it is a hub of trade and commerce.

The city of Lagos is black heritage, even though it has its colonial history, the people and culture overwhelm its pasts, Lagos is regarded as an important location for black cultural identity. Festivals like the Lagos Black Heritage Carnival, Festac Food Fair, etc. and many more are held in Lagos.

Describe the People and Place: Provide information that would be helpful for an outsider who has never been there and may have no context about this Place to better understand the area.

Many people are shocked the first time they are in Lagos, it is a big, loud and in your face kind of city. The noise, chaos, traffic and energy of people pacing around can be overwhelming, the lifestyle in Lagos is fast-paced and, as the fastest growing city in Africa, hustle and bustle abound.

Although the Yoruba are the dominant ethnic group in Lagos, it is the melting point of Nigeria and the rest of the world. There are more than 300 ethnic groups represented in Lagos including the Efik, Igala, Hausa, Igbo, Tiv, and Fulani, there are small minorities of American, British, East Indian, Chinese, Italians, white Zimbabwean, Greek, Syrian, Lebanese and Japanese etc. 

The topography of Lagos is dominated by its system of islands, sandbars, and lagoons. The city itself sprawls over three main islands: Lagos Island, Lagos Mainland, and Victoria Island, connected to each other by a system of bridges. The city lies 6m above sea level, it has a tropical climate with two distinct seasons in a year, the rainy season and the dry season.

Lagos has a rich history of economic growth and transformation, although it the smallest state in Nigeria, it accounts for over 60% of industrial and commercial activities in the nation. It generates the highest internal revenue of all states in Nigeria.  If taken as a country on its own, its 2016 GDP of $145 billion makes it the 7th largest economy in Africa. Lagos is home to rich and poor, it is a place where the sprawling neighbourhood of the super-rich and estates of the middle and upper-middle class is right next to the shanties of the poor and low-income families.

People living in Lagos are ambitious and full of drive, the entrepreneurial spirit is in the air and it is evident by the sheer number of people selling everything you can imagine to you in traffic, new businesses spring up every day, buildings are often knocked down so that the ambitious new ones may arise, every few weeks a tiny store appears in the corner.

Among many other things, Lagos is a cultural powerhouse of entertainment, fashion and lifestyle in Africa, it birthed Afrobeats and Nollywood, both movie and music industries have taken their place on the world stage. The Lagos fashion industry has also grown in size and sophistication, attracting global attention and a serious contender in the emerging fashion capital of the world.

Food brings people together in Lagos, it is a unifying factor with some of this food gaining popularity outside of Nigeria e.g jollof rice, dodo etc.  Food is ready in every corner of Lagos, from small eateries to upscale restaurants, its also the top item at parties and events. There are several options available when it comes to food, you can get almost any popular local delicacy in a Lagos "buka" or restaurant. e.g Hausa tuwo shinkafa, Igbo's starch and draw soup, the Italians Pizza, the Yoruba's pounded yam and egusi soup. 

The people of Lagos are enterprising and are always hopeful for the best despite the challenges they face everyday.


What is the approximate size of your Place, in square kilometers? (New question, not required)

1171

What is the estimated population (current 2020) in your Place?

21000000

Challenges: Describe the current (2020) and the future (2050) challenges that your food system faces.

The food system in Lagos works but it is riddled with inefficiencies from farm to table. The food insecurity is a mix of problems but chief among them is the high cost of food, according to the USDA Lagosians spend the most on food in the world, it is estimated that 56.4% of their monthly income is spent on food, the other issues include safety and hygiene, traceability, poor storage, price fluctuations etc

There are many factors that contribute to food insecurity in Lagos but the single most important threat is rapid urbanization. Today, Lagos records the highest number of urban migration in the world at 18.6 per cent in a period of two years according to Facebook data. The population of Lagos is projected to hit 32.6 million or more by 2050. The more people come to live in Lagos the higher the demand for available food, the higher the price.

There is also the challenge of infrastructure which reduces efficiency and adds to cost, it causes lengthy supply chain, adding to the cost of food in different areas of Lagos, sometimes a food item goes through 4-5 steps in the chain before reaching the end consumer,

The high cost of food has a negative effect on the nutrition level of the average Lagos family, with a more negative impact on the children. Many families shift from a varied diet rich in micronutrients to one that is derived predominantly from high carbohydrate staples because most staple foods (e.g. rice, maize, cassava) are much cheaper than fruits, vegetables and animal source foods. However, when staples are eaten on their own or with very small amounts of other foods, the result is poor quality, a monotonous diet that is likely to be nutritionally inadequate in protein, fats and micronutrients.

Mile 12 market in Lagos is an open international food market where all food items from farms across Nigeria and West Africa are deposited for sale to wholesalers and retailers. It serves several states in Nigeria and other West African countries. However, there is a lack of infrastructure that adds to the inefficiencies in the market.  Food items brought into the market do not go through any quality or safety check and are largely untraceable. The sanitation of the market is generally poor as well.

There is also a high demand for meat but there are no welfare standards for the animals, there are no policies in effect to determine how they are fed, kept or slaughtered. 


Address the Challenges: Describe how your Vision will address the challenges described in the previous question.

Pricepally is a sharing economy e-commerce platform that enables people to buy food in bulk or share bulk food with others online, making it cheaper than buying at retail. Pricepally delivers fresh, affordable, safe, traceable and nutritious food items to customers doorstep directly from wholesalers, farmers and producers. We have been able to help families reduce their monthly spend on food by as much as 25%

Pricepally solves the problem of the high cost of food by aggregating demand of food items in urban African cities and leveraging on the demand to negotiate better pricing and deeper discounts from suppliers which includes farmers, producers and wholesalers. We also monitor product quality and safety, we make sure that the consumer gets the best food items at the best price possible always. Pricepally shortens the supply chain by direct supply to end consumers, this reduces the cost and increases efficiency. 

Pricepally provides farmers, producers and wholesalers direct access to urban food demand. We help them sell their inventory quicker, reduce waste and increase their profit margin by cutting out the middle man. This direct access to market stimulates production, we also provide farmers and other stakeholders`` with data, these data can help farmers and producers forecast and plan production to meet demand and specification. We incentivize and encourage farmers to adopt sustainable farm practices. About 95% of food items sold on Pricepally are locally produced in Nigeria.

We are building a platform that will bring together stakeholders in the food industry to discuss and collaborate with strong advocacy and community engagement on ways to improve the food systems in urban Africa. A community that will inform, shape and facilitate progressive policies.




High Level Vision: With these challenges addressed, now provide a high level description of how the Place and the lives of its People will be different than they are now.

Pricepally model is designed to be most impactful at scale, the more people who come on board the better the prices we can offer them. Pricepally guarantees the teeming Lagos population affordable, fresh, traceable and nutritious food items always, Lagosians order online via web or the apps at their convenience. 

Pricepally users are able to reduce their monthly spend by up to 30%, women who usually do the hectic market runarounds for the family can easily do it from the convenience of their phones. They can now have more money and time to themselves because the food items are delivered to their doorstep.

The middle and upper-middle-class families in Lagos use the apps or web to make orders while the low-income families are able to shop via USSD, they can subscribe for food vouchers daily or weekly to redeem for good quality foodstuff from Pricepally agents closest to them. In other words, low income can buy discounted shared food items daily and pay as in an easy predetermined way for them.

Small and big businesses who use food as inputs are able to increase their profit by buying the food items at lower prices. Restaurants, hotels and caterers use the Pricepally app regularly to get their supplies. Apart from boosting their profit, it also improves their efficiency.  

The direct access to urban city markets has improved the lives of farmers and helped them increase production and profit margin by eliminating the middlemen. It is safe to say no matter your level of income, nobody goes to bed hungry or is malnourished in Lagos. Families are able to feed well and still have money and time to spend on other things.

Pricepally contributes food items to the very poor through its partnerships with NGO's who focus on the sustainable assistance for the very poor, giving them good nutritious meal till they are able to get out of the very poor poverty bracket.


Full Vision: How do you describe your Vision for a regenerative and nourishing food future for your Place and People for 2050?

It's 2050, Pricepally is the largest online food cooperative in the world, operating in 125 cities around the world. It is a multi-level specialized wholesale and distribution company that sells directly to consumers online and offline, it has gone from a startup founded in a two-bedroom flat in Lagos Nigeria to a multinational trillion-dollar company. Its mission statement is changing food systems for good, one city at a time. It has been doing so for over 30 years now. 

The Pricepally model is simple, we aggregate food demand in cities, and leverage on the aggregated demand to negotiate better prices, demand good quality, hygiene and traceability. Pricepally partners with rural farmers, urban and peri-urban farmers, wholesalers, small and big food processing companies, logistics companies in the city to solve the cities peculiar problems. We have solved the problem of high food prices in Nigeria, where we started with Lagos.

The threat of food insecurity in urban African cities is now a thing of the past, everyone in Lagos, no matter the income level can buy nutritious safe and traceable food items on the go. We have leveraged technology to increase access for food to all income levels, the middle and upper-middle-income individuals usually order via the website or apps while low-income individuals use USSD to order from Pricepally agents in their community. 

Pricepally conferences around the world in the cities it operates are packed full with stakeholders of the food industry from the government and private sectors, it is where farmers, executives, investors, cooperative societies, food enthusiasts etc come together to discuss important issues 

Pricepally has over the years boosted food production by directly investing in viable small and big farmlands under its cooperative farm's project which is owned by its members. They have boosted urban and peri-urban farming in cities by directly investing and opening up new markets for urban farmers in the cities where they are located, this has significantly improved urban farming. They have created millions of jobs and introduced better agricultural business models within the company, that several other competitors have emulated.

Pricepally has created an active consumer community and movement that now holds the power to demand better standards across the food system. Users on the Pricepally platform jointly advocate for better welfare standards for animals, better food quality, sustainable farm practices, they inform, shape and facilitate progressive policies.

Farmers across Nigeria are using the Pricepally platform to access the urban market, they are able to increase their profit margin significantly by removing middlemen, and with the data Pricepally provides them, they are able to determine the best price to sell, plan production and output accurately, produce what customers want, improve farming practices, curb wastes etc. 

Pricepally has become the famous entry point for newly manufactured food products for FMCG companies, food items grown with new farming techniques such as hydroponics and vertical farming.



How did you hear about the Food System Vision Prize?

  • Email
  • Website

Attachments (1)

8 comments

Join the conversation:

Comment
Spam
Photo of Mat Jones
Team

Pricepally looks like it has some very promising features. Could it be used to drive custom towards more locally produced food, or food with other positive credentials such as better social and animal welfare standards?

Spam
Photo of Luther Lawoyin
Team

Thanks, Mat. Yes, we sell only grown in Nigeria food items and we are working to standardize many things within the market to serve consumers.

Spam
Photo of Mat Jones
Team

Thanks for that clarification - it's really inspiring to see your business taking off in a city like Lagos - I would imagine there are some major logistical barriers!

Spam
Photo of Luther Lawoyin
Team

Thanks for the kind words, yes its really challenging but we build systems around it to solve it.

Spam
Photo of Mat Jones
Team

I wonder whether Pricepally could build on some of the success of Twiga in Nairobi. It's interesting to see that Twiga are already eyeing up Lagos
https://www.bloomberg.com/news/articles/2019-04-11/kenya-fresh-produce-platform-aims-to-disrupt-african-retail?fbclid=IwAR2TUTCPA-nMGsCPkaucU5yhew7XTGed-Pu-gXCL_h-ft4NKX7mQTnbllyg

Spam
Photo of Luther Lawoyin
Team

Yes, we can learn a lot from their success, I read up anything i find about them and its not surprising that they are eyeing Lagos, the more solutions we have the better, their model seems quite different from ours

Spam
Photo of Itika Gupta
Team

Hi luther lawoyin  Great to see you joining the Prize!
We noticed your submission is currently unpublished. Was this your intention? We'd love to have your submission included in the Prize. Even if you've not started populating your Vision just yet, by publishing your submission you can make it public for other teams in your region to see, get in touch and possibly even collaborate with you.
You can publish it by hitting the "Publish" button at the top of your post. You can also update your Vision at any time before 31 January 2020 by clicking on the "Edit Contribution" on top. If you need inspiration or guidance, take a look at the Food Vision Prize Toolkit.
Here is the link to the Prize Toolkit: http://bit.ly/2X4ZxQk

Look forward to seeing your Vision evolve through the coming weeks.

Spam
Photo of Luther Lawoyin
Team

Alright will do!