Hello Tractor sharing app

thumbnail_download (3).png

download (3).png

This collection is part of Footprints Africa's work to build a comprehensive database of circular economy initiatives in Africa. 

This is a result of the collaboration with the <a href="https://www.acen.africa" target="_blank">African Circular Economy Network (ACEN)</a>, as part of the programme to support the circular economy transition in Africa. Footprints Africa's vision is that businesses can be a force for good at scale. Their mission is to advance sustainable, scalable and inclusive approaches to development of local African economies. Footprints Africa supports SMEs to adopt future-friendly practices, such as those inspired by the circular economy, to address the challenges of growth and create jobs. 

This open-source dataset features well over 500 cases and 200 examples of policies and laws and intent to collect inspiring examples of initiatives from across Africa, in order to inform the global dialogue, which is largely focused on the European and American context. 

To learn more about Africa's initiatives and content to accelerate the transition to a circular economy, visit https://www.footprintsafrica.co/



thumbnail_download.jpg

download.jpg

Footprints Africa

large_photo-1507576566681-1932a6a38099-1920w.webp

medium_photo-1507576566681-1932a6a38099-1920w.webp

small_photo-1507576566681-1932a6a38099-1920w.webp

thumbnail_photo-1507576566681-1932a6a38099-1920w.webp

photo-1507576566681-1932a6a38099-1920w.webp

thumbnail_Starter kit image.JPG

Starter kit image.JPG

Starter Kit collection

Business case

Impact on the quantity or quality of jobs, and shifts in the labour market

Jobs

Contribution to social parity, or impact on social disparity

Equality

Direct and indirect reduction in economic costs

Cost Savings

Direct and indirect effects that increase revenues or the potential for new revenues, for example from new products, customer segments, partnerships or business models

Revenue Potential

Efficiency gains on operations or transactions either through cultural or technological shifts

Productivity

Producing agricultural products and processing them into food and beverageproducts for consumption

Agri/Food

Use digital, online platforms and technologies that provide insights to track and optimise resource use, strengthen connections between supply chain actors, and enable the implementation of circular models



Incorporate digital technology

Employ online platforms to connect and improve information sharing between stakeholders

Digital platforms

Developing or utilising online marketplaces to enable the peer-to-peer exchange of products and services

Peer-to-peer online marketplaces

Other

Build countries consume 13% of the global material footprint, while they account for almost 50% of the population. 

Examples include countries in Sub-Saharan Africa and South Asia such as: 
- Bangladesh
- Ethiopia
- Nigeria
- Pakistan
- The Philippines
- Some small island states, ...

Minimal contribution to the overshoot of planetary boundaries: these countries contribute 20% of land use change, 30% of
freshwater use, 23% of phosphorus emissions to soil, and 11% of nitrogen emissions.

To find out what country profile your country belongs to, explore [this interactive story](https://circularity-gap.world) and search for your country on the final map.

Build

Impacts

small_climate-4803653_640.jpg

thumbnail_climate-4803653_640.jpg

climate-4803653_640.jpg

Industries

small_coast-wind-turbine-sea-sky.jpg

thumbnail_coast-wind-turbine-sea-sky.jpg

coast-wind-turbine-sea-sky.jpg

The principles of a circular economy concern designing out waste, regenerating ecosystems and keeping items in use. Decoupling the economy from material flows—improving the rate of resource productivity faster than the economic growth rate—is also a consistent guide. By evolving with the growing number of applications of circular economy principles, and consolidating these strategies across thematic areas, Circle Economy’s Key Elements Framework (KE) renders the elements of the circular economy salient and serves as a basis to derive contextual strategies and interventions. 


The Framework consists of:
- Core Elements: Activities directly handling product or material flows; and uniquely,
- Enabling Elements: those that remove obstacles for core actors.


Key elements of the circular economy

large_photo-1515534238346-fb9ae3e399d0.jpg

medium_photo-1515534238346-fb9ae3e399d0.jpg

small_photo-1515534238346-fb9ae3e399d0.jpg

thumbnail_photo-1515534238346-fb9ae3e399d0.jpg

photo-1515534238346-fb9ae3e399d0.jpg

Circle Economy's framework of strategies and activities that define the circular economy

Urban Opportunities

Whilst no two countries are the same, there are still obvious similarities between some of them, with discernible development patterns and parallels in evidence. Common problems and shared solutions help place unique country identities and individual issues in context.

Whilst this classification is far from clear-cut and exhibits some overlap, it does underline how the discourse on transitioning to a circular economy needs to account for both differences and commonalities, if we are to arrive at a more strategic and instructive analysis. It also allows to highlight a set of key themes that are likely to be central to the countries that fall under the respective profiles. 

Country profiles (Build, Grow, Shift)

thumbnail_bgsimage 14.png

bgsimage 14.png

A framework to distinguish between different country profiles and their circular transition needs.







 


 


  Forbes Uber’s ride-sharing technology has become ubiquitous over the last… Meet The Social Entrepreneur Behind Africa’s “Uber For The Farm” Read More   
   Read More Fast Company This startup lets African farmers hire an on-demand tractor to boost their harvests Small farmers in rural Nigeria typically can’t afford tractors. But a quickly expanding...  
 Read More   CNBC Africa IBM Research, Hello Tractor unveil digital wallet for agriculture based on AI and Blockchain Hello Tractor in partnership with IBM is revolutionizing agriculture across Africa...  

  
       


 “Hello Tractor, The Uber for tractors”
The Nation Jun, 2017 “IMPACT JOURNALISM DAY: Hello Tractor, the Uber way for renting a tractor in Nigeria”
The Asahi Shimbun Jun, 2017 “Hello Tractor – An Uber for Tractors”
City Press Jun, 2017 “Hola tractor, una nueva ruta paralos cultivos en África”
El Heraldo Jun, 2017 “Un tractor de bajo costo ayuda a los campesinos en Nigeria”
El Tempo Jun, 2017 “‘Uber’ de tratores ajuda pequenos agricultores a melhorar plantações”
Folha De S.Paulo Jun, 2017 “Hello Tractor, le Drivy des machines agricoles”
Juene Afrique Jun, 2017 “«Hello Tractor», le Airbnb des machines agricoles”
L’Economiste Jun, 2017 “Des tracteurs pour tous”
Tribune deGenève Jun, 2017 “Farmers’ best friend: ‘Uber tractors'”
StraitsTimes Jun, 2017 “Hello Tractor, le Uber des machines agricoles”
Le Figaro Jun, 2017
   



“Can tractor sharing boost the incomes of small-scale farmers?”
How We Made it in Africa Aug, 2015 “Sowing self-sufficiency in Africa with Anacostia-based Hello Tractor”
Washington Post Sept, 2015  

“It’s Like Uber for Tractors, and It Could Change the Game for African Farmers”
Takepart Aug, 2015 “Echoing Green Fellows: Meet the Next Generation of Food System Leaders”
FoodTank Aug, 2015 “This Tractor-On-Demand Startup And 10 Others Will Pitch At Seedstars World Lagos Pitch On Friday”
TechCabal Aug, 2015 “Youth lifting Nigerian farmers out of poverty”
The Daily Nation Aug, 2015 “Regional entrepreneurs in big win with $1b deals for youth, women”
The East African Aug, 2015 “Kenya to get entrepreneurship centre as US commits Sh10bn”
Business Daily Africa Aug, 2015 “Obama: ‘Africa is on the move’”
Washington Post Jul, 2015 “Food Friday: Ecosystem based adaptation”
NTV Jul, 2015 “Obama visits Kenya and Ethiopia”
CNN Jul, 2015 “Barack Obama charms Kenya on historic visit”
The East African Jul, 2015 “Obama in Kenya: A report from the field and a recap of the Global Entrepreneurship Summit”
Brookings Jul, 2015 “Sunday Live interview with Jehiel Oliver and Dorothy Ghetuba”
Citizen TV Jul, 2015 “An Affordable Smart Tractor For African Farmers And Their Tiny Farms”
FastCompany Jul, 2015 “USAID Seeds Innovation: 15 Social Entrepreneurs Making a Difference”
USAID Blog Jul, 2015 “Trying to Save the World–and Getting Funding to Boot”
Inc. Jun, 2015 “Hello Tractor is Raising Capital to Expand it’s Smart Tractor Production, Distribution and Leasing Business Across Africa”
Agri Investor Mar, 2015 “6 development startups you should know about”
DEVEX Feb, 2015 “Meet Hello Tractor: Integrating Agriculture With Technology”
Blerds Feb, 2015
   
 

“A startup dedicated to helping African farmers talks to Startup Insights”
Startup Insights Dec, 2014 “Taking up Farming”
Norwegian Council for Africa Dec, 2014 “The Download: What lies ahead for the local tech sector in 2015?”
Washington Post Dec, 2014 “Hello Tractor Is On the Move With $50K for Its Innovative Tractor Sharing Platform”
ChicagoInno Dec, 2014 “Parents, are you raising aspiring rappers and reality stars or techies and venture capitalists?”
Rolling Out Nov, 2014 “Inaugural Diaspora Demo Day African Startup Showcase & Networking Reception to Celebrate Technology & Social Entrepreneurship in the African Diaspora”
Innov8tiv Nov, 2014 “Tiphub Hosts Diaspora Demo Day at the World Bank”
Black Enterprise Nov, 2014 “Peace Corps and Agriculture Start-up Hello Tractor Give Local DC Youth A Glimpse Into The World of International Development”
Innov8tiv Aug, 2014 “Hello Tractor Raises $180,000 To Bring Uber-like Technology to Nigeria’s Agriculture Sector”
Tekedia Nov, 2014 “Booth New Venture Challenge”
Chicago Tribune – BlueSky May, 2014 “Meet the Guys From Hello Tractor, the Company that Looks to Revolutionize Farming in Nigeria”
ChicagoInn Jun, 2014
    


  


The majority of Hello Tractor clients are smallholders farmers with one to five hectares of land.
Hello Tractor has been compared to an Uber for tractors. Like the ride-hailing app, it uses technology to connect farmers with tractor owners but there are differences. Agents assist with the bookings and tractor owners need to buy the company’s GPS device to attach to their tractors to track movements and accept booking requests.
Founder and CEO, Jehiel Oliver, recognised an opportunity when he learnt of the lack of mechanisation in the African agricultural industry.
“Rapid urbanisation is depleting the available labour,” he says. In this environment, machinery typically fills the gap. Yet, small farmers in Africa can seldom afford it.
“In smallholder farming systems, collaborative consumption is the only way to make tractors affordable. It makes no sense for an individual farmer to own a tractor,” notes Oliver. “But if you can share a tractor, the cost of the service is significantly less than you would pay a human to do the same work.” It’s also faster, more efficient and produces higher yields.
Oliver was born in the United States and started his career in investment banking and private equity but slowly became interested in emerging markets and agriculture. Microfinance institutions have not been particularly good with supporting small farmers, so he investigated agriculture and how mechanisation can transform things.
Oliver adds that he wanted to use his finance skills to do good.
After some research, he decided to move to Nigeria where he founded the company six years ago.
How the business works
The typical Hello Tractor client is a small farmer with one to five hectares. “The vast majority are men,” says Oliver. “They are typically a little older and about 86% live at or below the poverty line ($5 a day) according to our customer records.” They have never used tractors before using Hello Tractor’s service and traditionally relied on manual labour.
There are also the tractor owners, who vary from individuals with one tractor to large companies and private equity funds with sizeable fleets. The company currently has over 3,000 tractors and combines on its platform. Tractor owners usually get paid a deposit to deploy their tractors and then receive their balance payment after service is completed. They make 90% of the revenue whilst the other 10% goes to the booking agent.
Hello Tractor sells a GPS monitoring device that is installed onto a tractor. Owners can subscribe to the software-as-a-service solution app to track their tractor and monitor the work it is doing, the operator’s performance, fuel usage and maintenance needs. Hello Tractor doesn’t earn revenue from the booking of tractors; it makes money from selling the GPS devices as well as from the software subscriptions.
“Our GPS device collects important data from tractors while they work on the field and pushes this data to our mobile and web applications where it is displayed in a user-friendly format and grants tractor owners insights into their tractor’s activities on the farm, maintenance needs, fuel consumption and operator information. These valuable insights allow tractor owners to make informed decisions and increase their profitability which is why they pay for the device,” Oliver explains.
Hello Tractor founder and CEO, Jehiel Oliver
There is a separate app where farmers connect with the tractors on the platform which Oliver calls “the marketplace part of our business”. Agents are recruited from the community and paid commission to sign up farmers and provide assistance. “As the season approaches, the agent will book the farmer’s field for service. Once that booking occurs, the platform will connect that request to the nearest available tractor with an applicable implement,” Oliver explains. “We don’t really talk to the farmers about apps, because they connect through the booking agents who use our apps to register them.”
Previously, farmers were required to send an SMS to the app, which connected the request to a nearby tractor owner, but they were hesitant because the size of the transaction wasn’t something they were comfortable with doing electronically. Farmers preferred human interaction.
Oliver says customer acquisition through agents is slower but is far more sustainable; “Trust matters.”
Nigeria – a fertile market
Oliver chose to start the business in Nigeria because he liked the country when he first visited and it provided a fertile environment. There is a low level of mechanisation on farms, a sizeable farming community, as well as one of the largest surface areas of uncultivated land in the world. The people are also receptive to new ideas. “If something works and Nigerians see the value in it, they jump at it. They are keen on experimenting with new things and technologies,” he says.
He did the groundwork to attract clients. “It was initially about understanding who the players are and who represented the lowest hanging fruit.”
Finding the money
Oliver started Hello Tractor with a mix of savings and investment. “We bootstrapped in the beginning and then I exhausted my savings.” He then raised “a bit of money”, less than $2 million, most of which was subsequently paid back to the investors with interest. The focus then turned to sales and organic growth.
In hindsight, Oliver says he wouldn’t focus so much on raising investment again. “There’s not a lot of money going into the venture space in Africa. As a result, entrepreneurs go through so much due diligence for relatively small raises.”
Tractor owners on the Hello Tractor platform vary from individuals with one tractor to large companies with sizeable fleets.
Launching in other African markets
By 2019, the business expanded to Ghana and Kenya and eight other countries on the continent.
Oliver and his family moved to Kenya, which Hello Tractor is using as a springboard into Asia; a project slowed down by the Covid-19 pandemic. He hopes to use profits from Asia to subsidise expansion in Africa, where current volumes are too low to invest in growing overheads such as operating infrastructure or hiring more data scientists. He mentions India, where 730,000 tractors were sold in 2019 as opposed to only 14,000 on the entire African continent.
Currencies, Covid-19 and other challenges
Some of the macro challenges facing the company are impossible to overcome, such as currency volatility, he says. There is also the pandemic. “We started the company during the Ebola epidemic and now we’re in the midst of Covid-19. The way you mitigate these risks is to protect cash flow, move slowly, tighten your belt and taper some of your growth plans to weather the storm,” maintains Oliver.
Human resources is another challenge. Hiring experienced technical managers within the markets where the company operates hasn’t always been possible. People are committed but not always experienced at the senior level. “It’s hard to find people who are comfortable managing those high-level relationships.”
Competition, please
“There is so much space in the market for farm equipment that competition is not a huge worry. For now, we don’t feel threatened by similar businessess,” Oliver says. “There is enough space for someone to thrive and do incredibly well if you get it right.”
It’s still a big challenge to ask people to invest in tractors as an asset class. “Africa is full of opportunities for investment and people tend to expect returns quickly,” he says. “Our biggest competitor is the attractiveness of buying an Uber vehicle or investing in class-A real estate.”
Hello Tractor recently entered into a finance project with Mastercard to use Hello Tractor’s data and card payment rails as well as Mastercard’s banking partners, to launch a tractor finance product. “We’re excited about getting more tractor finance and equipment into the market,” notes Oliver. 



Africa

Kenya

Nigeria

large_blob

medium_blob

small_blob

thumbnail_blob

blob

Hello Tracktor

<p>Small-scale farmers in sub-Saharan Africa face large obstacles to productivity increases due to a lack of access to mechanical equipment, such as tractors. This results in smaller plots under cultivation and lower yields. Hello Tractor is a company that allows tractor owners to connect a hardware device with their tractor that tracks data and analytics, and connects the tractor to the Hello Tractor app. Farmers can then book a tractor via the app, and use its services for a lower price than buying their own tractors. By creating equitable access to tractor services, Hello Tractor enables smallholder farmers to earn and grow more, improving livelihoods and food security for their families and communities.</p>