Once we last wrote about BeliGas, the social enterprise prided itself on not solely being a extra reasonably priced choice for offering LPG fuel cylinders, but additionally on its mission to rent B40 Malaysians and ex-convicts.
6 months later, it’s discovered a approach to additional add worth to its providers. As of June 2021, it’s enabled prospects shopping for LPG fuel to donate 1-10L of used cooking oil to get a subsidy on their fuel.
Managing director of BeliGas, Suthan Mookaiah informed Vulcan Put up that this had all the time been a part of the marketing strategy from early on.
“However since we have been working on a lean mannequin once we began, we needed to concentrate on constructing the primary a part of the enterprise first, which was to determine logistics and get in touch with factors throughout a large geographical space, after which set up relationships and belief within the native communities that we serve.”
He believes that BeliGas is now able to enter and set up themselves as a participant in waste oil assortment too.
Addressing a number of buyer ache factors
From his POV, prospects these days are extra prudent, and a enterprise that may assist them cut back their prices whereas being socially accountable will win their loyalty.
With that in thoughts, utilizing waste cooking oil donations to subsidise fuel costs simply made sense. It’s a way that kills two birds with one stone: carry their fuel retail value down by RM0.80 per litre of donated oil, and assist customers get rid of and recycle their waste oil correctly.
At present, BeliGas is limiting the oil donation quantities to a most of 10L per buyer at anyone time as they determine the logistics on pickups.
Since they’re doing fuel deliveries to houses on bikes, it’s not possible for them to absorb giant donation quantities in a single go. This isn’t an issue for his or her B2B prospects, since they ship on lorries for these.
To stop abuse of this technique, BeliGas has additionally outlined clear T&Cs in its app, amongst that are directions to not add different substances contained in the oil to bulk up its quantity, and to keep away from passing piping scorching oil to the group.
So the place does the oil go?
BeliGas’ HQ and its sellers (retailers) function individually, thus when riders beneath a supplier gather the oil, the HQ will purchase it. This permits BeliGas sellers to make extra revenue of their areas from different sources moreover simply promoting fuel alone.
The HQ then upcycles the oil into biodiesel for its personal lorries or to be bought to different biodiesel customers. It’s a course of that’s environment friendly and secure to be used with few modifications, Suthan said.
There are different used oil byproducts similar to glycerin which can be utilized by lubricant makers, however it is a plan BeliGas will solely discover as soon as it’s constructed up an operation of serious quantity and created its personal lab to experiment in.
To this point, consumer reception to this new initiative has been glorious, Suthan mentioned. “It’s nonetheless new, in fact, so we count on extra individuals to solely begin gathering and disposing with us within the coming months (as their fuel finishes). Even then, we’ve carried out a number of pickups from houses already.”
The group has collected 500L of used cooking oil since. When in comparison with their plan of gathering 15,000L by the second yr of the initiative, they’ve solely taken child steps, nevertheless it’s nonetheless a superb begin.
A mannequin that works for the startup
Suthan mentioned that this initiative is a everlasting addition to BeliGas’ providers, and that they’re engaged on selling it to boost consciousness amongst their finish shoppers.
“Sooner or later, we hope that we are able to gather about 3-5L of oil with each shopper that we serve. We hope to develop to serving 100K shoppers, and if we hit this, we’re actually doing a serious half in making our pipes, rivers, and sea cleaner of waste oil pollution.”
Apart from offering worth to its prospects, BeliGas desires to proceed offering employment to underserved communities in Malaysia too, particularly throughout this pandemic.
It’s acquired over 66 underserved people on its payroll in the intervening time, and so they aren’t restricted to roles as supply riders both; some have been employed to work at BeliGas hubs and its HQ.
The mannequin BeliGas has employed appears to be working nicely for it; in simply shy of a yr (July 2021 will mark one official yr), the social enterprise has generated income amounting to about RM2.7 million.
So as to add, Suthan fortunately shared that the enterprise is worthwhile too, crediting it to their differentiated worth proposition amongst conventional suppliers.
As of now, BeliGas is already serving households and companies in 214 areas throughout the Klang Valley, with plans to launch in different Malaysian states as soon as the lockdowns have subsided.
- You possibly can study extra about BeliGas here.
- You possibly can examine different Malaysian startups here.
Featured Picture Credit score: Suthan Mookaiah, Managing director of BeliGas