by Arthur Chiba, Marjorie Dodson, Raoul Laitat, Daran Xiao
Technology advancements bring seemingly exponential ease and convenience to our lives every day, and one need not look farther than the development of food delivery apps for proof. Be it for a late-night craving or a quick lunch in the office between meetings, food delivery apps have changed customer behaviour permanently and in many ways for the better, helping restaurants reach more customers and consumers diversify their meal options without jeopardizing convenience. In Singapore alone, this market is growing annually at a rate of 17.9% and is expected to be at US$316 million by 2022. A 2018 study conducted by Deliveroo in Singapore showed that 7 in 10 Singaporeans ordered food at least once a month.[i]
Plastic waste problem in Singapore
It is undeniable how this delivery phenomenon affects the environment, especially regarding plastic waste. In Singapore, of 250,000 tons of disposed plastic in 2018, only 10,000 tons (4%) were recycled.[ii] About 2,100 tons of overall waste is sent daily to landfills from food delivery.[iii] Delivery apps’ contribution to the problem of plastic waste has been exacerbated in the past months in Singapore due to COVID-19, like dining in restaurants is forbidden so take-out and delivery are the main alternatives to cooking at home. In the months of April and May alone, an additional 1,334 tons of plastic waste was generated by to-go packaging in Singapore.[iv]
Singapore government action
The Singapore government kicked off a “Zero Waste Masterplan” in 2019 that includes adopting a circular economy approach to waste and resource management.[v] As part of this place, the Environmental Public Health Act (EPHA) stipulates mandatory reporting of waste data and submission of waste reduction plans by owners, occupiers, or leasers of a workplace, upon written notice from the government. The current targets of EPHA include large hotels, shopping malls, factories, warehouses, and convention centres.[vi] The government plans to use the data collected to draw up plans for reducing the amount of packaging that will end up as waste for disposal.[vii] Industry and NGOs are also working with the government to reduce waste through the Singapore Packaging Agreement (SPA). This voluntary agreement is signed by industry associations, companies, NGOs, public waste collectors, and relevant government bodies and has cumulatively reduced 54,000 tons of packaging waste and saved about S$130 million.[viii]
The Singapore government is also targeting waste reduction through funding, including the 3R Fund and Environment Technology Research Program (ETRP). 3R Fund aims to offset the technological cost of reducing, reusing, and recycling waste in Singapore by making up to S$1 million available per approved project for the relevant organization, companies, schools, or town councils.[ix] The ETRP is a S$21 million funding program aimed at waste management research.[x]
Business action
Government action alone is not enough — businesses must do their part to reduce plastic waste. There is great potential to close the loop and use reverse logistics to reuse containers. In fact, there are already a number of examples around the world of startups focused on reusable containers as a core business model. For example, CauliBox and BYO Lunchbox both have business models centred on managing the logistics of the containers, utilizing restaurants and drop-off locations for container return. Such companies show that businesses can focus on the double bottom line by connecting their own growth with the use of reusable containers and the corresponding reduction in plastic waste.
As the to-go meal sector grows, industry players are realizing the need to be socially responsible and making adaptations. For instance, in Toronto 14 restaurants have joined reusable container systems.[xi] Companies such as Foodprint and Ozarka are also providing reusable containers. In 2019, many food delivery apps such as Uber Eats and Grab Food implemented a utensil opt-in option (previously an opt-out option) in the purchasing process. However, most of these projects are not directly solving the major problem – the containers being used in most systems are still disposable plastics.
In Singapore, BarePack is an emerging player in the reusable to-go container market. BarePack recently announced a partnership with delivery app Foodpanda.[xii] This recently established partnership aims to have reusable containers in all of Foodpanda’s partner restaurants, both for delivery and pick up. BarePack‘s business model requires the final customer to drop off used containers at a partner location.[xiii] By combining a large delivery player with a reusable container start-up, it is possible to incentivize the final consumer to reduce their plastic waste.
The opportunity in Singapore
The Singapore population is ready to see major action by government and businesses towards waste reduction. According to a recent survey, 4 in 5 Singaporeans agree that that the excessive use of plastics is a problem, yet 47% believe engaging in environmentally friendly practices is inconvenient. More importantly, 38% of Singaporeans agree they would support policies to phase out single-use plastics or disposable non-biodegradable plastics in favour of those made with more biodegradable materials or reusable alternatives if there were a small price increase. 64% would support it if there were no price increase.[xiv]
Solutions in the market
Currently, many businesses are looking to reduce plastic waste by increasing the use of recyclable and biodegradable food containers. For instance, Uber Eats is also promoting biodegradable packages.[xv] However, these materials are not as easy or perfect of a solution as they might seem. Using recyclable and biodegradable materials require a series of follow up events and if we fail to follow through any of these steps, the material will not be recycled or degraded. For instance, sorting and contamination pose big issues to the success of recycling programs. A small amount of non-biodegradable material or non-recyclable material can contaminate an entire batch of recycling, requiring the whole lot to be landfilled or incinerated instead of recycled. Moreover, even if recycling goes as planned, there are still efficiency and resource losses within the recycling system. Recycling often leads to “downcycling,” where the new material is of a lower quality than the input. Recycling thus in reality does not eliminate the consumption of raw materials.
Our solution targets consumers through food delivery providers and restaurants and can replace the reusable containers at large level.
Value proposition
Infinity Pack will reduce plastic waste and the corresponding raw material inputs for that plastic.
As of 2019, Singapore recycles 4% of its plastic waste.[xvi] This makes plastic the least recycled material in the country. Especially when compared to the global average plastic recycle rate of 18%, Singapore has a lot of room for improvement in terms of waste management.[xvii] Singapore food delivery businesses make up a growing portion of the total plastic usage. Infinity Pack can help combat this big problem.
Infinity Pack will also help food delivery services become part of the circular economy. The circular economy solves the environmental issue by reusing what would otherwise be waste and creating jobs in the process. Especially because Singapore has such a low plastic recycling rate, the circular economy is the best solution, as well as one currently touted by the government. This is also aligned with a couple UN Sustainable Development Goals:
11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management. Infinity Pack will be targeting metropolitan cities and help reduce plastic waste among most restaurants. Food delivery is commonly used by many people living in cities and our initiative will have an impact on adverse per capita.
12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse. Infinity Pack works on reduction and reuse of materials instead of recycling. The reusable containers will eventually wear off so it can be considered as a major reduction on the materials used. In addition, we are definitely reusing them
Infinity Pack business model
Infinity Pack challenges the old way of thinking about food containers and offers a returnable container platform that will help Singaporeans reach their zero-waste target.
Start using Infinity Pack today!
Infinity Pack is entirely focused on the activity of containers management. It offers standardized design containers that are 100% safe and in line with our values of preserving the environment. The container for food is made of the highest quality BPA free silicone. Our circular model to waste management will ensure we support restaurants and customers along the journey, from delivery, to collection and cleaning (pooling and dispatching).
Infinity Pack will work with delivery companies to ensure transportation (preferably by bicycle) of the containers from the restaurant to the cleaning centres.
Infinity Pack Partners
Government: Considering that Infinity Pack is in line with the objectives of the Singapore government’s “Zero Waste Masterplan,” there is ample opportunity for collaboration and mutual support. Infinity will work with the Singapore government to align objectives and obtain support to grow activities rapidly and help the nation reach its objectives. Infinity offers an alternative to disposable containers, which we hope the government will promote in the country.
Restaurants/hawker centres/food courts: Infinity will work closely with restaurants who will be on-the-ground partners. They will provide food using Infinity containers and offer customers the opportunity to return these containers that will be collected for cleaning. They will also be offered a platform to ask for additional supply or urgent pickup. Our partners will advertise Infinity on their shop website and will be promoted on Infinity’s app.
Ride-hailing companies (Grab, Deliveroo, Foodpanda): Infinity hopes to impact at scale and will, therefore, partner with all large companies willing to tackle a common problem. Grab, Deliveroo, and Foodpanda, Singapore’s three major food delivery companies, already demonstrated their ability to set aside their competitive mindset when they endorsed the Plastic ACTion (PACT) initiative in 2019, committing to reduce by over 1 million disposable utensils per week by adding a toggle button in their application to allows customers to opt into disposable utensils, with the default being no utensils. Infinity will work with these companies to advertise restaurants who use reusable containers, as well as leverage their network of drivers to move the containers where needed.
Corporations: As we plan to launch our activities first in the business districts of Singapore, we plan to partner with some of the largest employers of the country to organize the delivery of food as well as package collection. We believe that companies will be receptive to Infinity Pack’s action towards sustainability and will be great ambassadors of the cause, pushed by their conscientious employees.
Infinity Pack Finances
Infinity Pack will offer a financing model that is easy for customers to adopt, while offering the right incentives for rapid return. Customers may also use the containers for a longer time if they want to show off the great quality containers in their day to day life, but will be subject to a smaller deposit reimbursement. Each container will be marked with a universal QR code, scanned with the app at the point of collection and drop off. In case of delivery, the QR code will be made available within the delivery application.
Pricing structure (amounts are indicative to clarify the incentive model):
Costs: There will be three main cost centres in our activities: the cost of buying the containers, the cost of moving the containers, and the cost of cleaning the containers. A pilot should be conducted to quantify precisely the cost of operation.
Implementation / Growth
Considering public awareness and government interest in reducing plastic waste, waste reduction programs are poised for success. Infinity Pack is thus coming on the market at a time of high demand with few competitors. As the government continues to implement its “Zero Waste Masterplan” and public pressure grows, restaurants, hawker centres, and delivery companies will be increasingly incentivized to find zero-plastic and reduced waste options for takeout and delivery. These circumstances provide a promising environment for Infinity Pack to succeed and scale in the coming years, pulled by market demand and beneficial policies.
The project first will be rolled out in areas of high demand and high willingness to pay. Assuming most workers are able to return to their offices this year, we have identified the Central Business District as a promising place to roll this out for office workers who tend to order lunch to-go, are highly educated and thus more likely to be aware of global ecological issues, and have the income to afford the high deposit required for Infinity Box. There is also a potential for partnering with corporations that would offer this perk to all employees. By targeting a highly concentrated area for roll-out, we can ease the return of the containers, and also ensure high product velocity, as many of these workers order delivery multiple days per week.
The project will be scaled through corporate partnerships, word-of-mouth, and public pressure on delivery companies and restaurants to sign on. After gaining traction in the CBD, we will target other business districts and office parks and then move into residential areas that have concentrated populations, such as large apartment and condominium complexes. This step-by-step growth will allow us to test out different strategies and learn quickly and in contained ways. Infinity Pack can also potentially leverage some of the aforementioned government incentives, such as the 3R Fund, to grow and even work to develop the government as an official partner.
Immediate next steps include designing and procuring containers; creating partnership schemes with large employers in CBD; developing engagement plans for restaurants and delivery companies; establishing a washing facility (or a potential partner for outsourcing); and build relationships with the Singapore National Environment Agency (NEA) to better understand their plans and motivations.
Points of uncertainty and implementation challenges
Infinity Pack’s financial success is aligned with achieving its target SDGs – to a point. Singapore currently has a huge issue with single-use plastic waste, especially when it comes to delivery. Therefore, increasing Infinity Pack use will hopefully lead to commensurate reductions in plastic waste. As the company scales, demand for disposable plastic containers will decrease and waste will be reduced. However, if and when Infinity Pack reaches a point of saturation in the market, where all avoidable use of disposable plastic containers is eliminated, then any further growth within Singapore will likely lead to more waste and not less. However, this hypothetical situation exists in the distant future if at all and by then Infinity Pack may be able to identify other areas for waste reduction, such as reusable cups or grocery bags. Infinity Pack may also consider expansion abroad once it has succeeded in the Singapore market.
Beyond achieving our target SDGs (12.5, 11.6), it should also be noted that Infinity Pack will likely actually have negative repercussions in terms of some of the other SDGs, especially reduction of carbon emissions (SDG 7). Some studies suggest that the production of durable, reusable containers can be more carbon-intensive than that of single-use plastic containers, even when accounting for the difference in the number of times used.[xviii] There is also concern around reverse logistics required for the circular economy to take place and the potential environmental impacts of implementing those logistics, such as transportation. Moreover, water, detergent and energy will be required to clean the Infinity Packs. After weighing these potential negative repercussions against the reduction in plastic waste, we have determined the project still has a net positive effect on humanity and the earth.
There remain some points of uncertainty around securing partners, relying on policies, market competition, customer uptake, and successful return rates of the containers. While the Singapore government is clearly making strides towards waste reduction, whether Infinity Pack would be their partner of choice remains in question. The existence already of barePack in Singapore and its successful partnership with Foodpanda lays promising precedent. While Infinity Pack will not necessarily be the first mover, it will be able to benefit from the path laid by barePack and learn from its mistakes. By rolling this program out in areas with higher demand and disposable income, Infinity Pack will be able to fall fast and learn quickly about customers’ needs and the market generally. It can also use marketing campaigns to further increase public concern around the issue of plastic waste and the benefits of using Infinity Pack.
A path forward for Singapore and beyond
Infinity Pack is poised to be a model for waste reduction worldwide. We are re-envisioning incentives for increasing uptake for reusable containers and the systems required for the continued environmental and business sustainability of such a company. Our goal is not just to succeed in the local market but also inspire others around the globe to create similar models and decrease plastic waste for our whole planet.
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