Agruppa

What is the problem the social business is solving?

Fruit and vegetable prices sold on central markets have a huge markup because of multiple middlemen along the chain, each taking a cut.  Small shop owners (mom-and-pop shops) are the final step of this inefficient supply chain. They spend around 15 hours per week and up to 20% of their income traveling to faraway markets where they purchase their stock. This dynamic translates into low margins and overpriced food for low-income customers.

How does the social business solve this problem?

Agruppa creates collective orders by connecting and aggregating vendors demand via technology. That allows bulk purchasing from farmers and primary distributors, which permits access to discounts that are transferred to vendors, making them more competitive and efficient, as orders are delivered on their front door.

How does the social business generate revenue?

Fruits and vegetables bulk purchasing discounts go up to 30% from its original price. This allows Agruppa to give vendors a 5% discount compared to central market prices and still have a 25% margin for operation and logistics expenses.