(Still under development phase)
Hello Erf – Tractor Hiring Tool
Making Mechanization easy for farmers and attractive for Agripreneurs !
What is Hello Erf ?
Hello Erf is a call center based mechanization hotline that leverages Mobile apps, web app and call center that serves to link both farmers and Mechanization service providers.
The mechanization service provision faces efficiency challenge from both the service provider and the farmer perspective.
Most of cereal farmers produce twice a year and the main season is the longest rainy season. Getting not all the necessary inputs and services on time affects their productivity and puts them in lots of additional costs. Farmers access the service by searching a service provider in the area, negotiating with brokers and or by going to kebelle agriculture office to seek connection with one of registered vendor in the area. After getting the negotiation they’ve to wait their turn until the tractor owner operator comes.
The mechanization service providers on the other hand don’t have proper way of handling and organizing bookings. Sometimes brokers or agriculture offices may do the coordination in registering farmers in cluster and calling the operators/owners. In most of the cases this has at least helped as a temporary solution.
On the other hand, the tractor owners, who mostly manage virtual but not operate, don’t have any real-time information about their tractors or combiners and are vulnerable for fuel theft and under reports of revenue. Besides because of lack of preventive maintenance they incur big cost of spare parts. These has made the business less attractive to entrepreneurs who are interested in the mechanization service provision.
There are 12,500 tractors operational nationwide. The government is also in the process of introducing two wheel tractors to instigate the mechanization process. Besides, quite recently the Development Bank of Ethiopia has announced that tractors purchased with the lease financing option of the banks machinery loan disbursement channel are free to be rented once owners finished their lands. Though big opportunity to lift up the sector the above constraints had put hurdle along the way.
Type of solution
Hello Erf uses web and mobile platform.
Farmers and mechanization service providers.
What does Hello Erf offer ?
Hello Erf (Uber of tractors) is a call center based mechanization hotline that leverages Mobile apps, web app and call center to serve by linking both farmers and Mechanization service providers.
Farmers can subscribe to service by either calling to a short code or downloading the app that helps them to book for a mechanization service. This benefits the farmer by being a one call away mechanization hiring tool that will help him/er to get it timely with low effort and cost. The integration with mobile money and microfinance institutions (MFIs) of the system will increase the farmers’ access to input financing.
One the other hand, the mechanization service provider will be able to get the status of the implement 24/7 along with managing bookings from the farmers.
For service providers who get challenged to use the apps, it’s possible to get booking and status report via call/SMS from the call center. The call center operators, having access to a web platform that monitors all the registered tractors, will link the farmer with idle tractor or book for the next. This will also help new service providers to be visible enough to get service requests from farmers with no additional effort entering into the market. The telematics devices to be mounted on the tractors will help owners to monitor fuel, current location and the next maintenance schedule of their machine.
How will the business be sustainable
Connect Trading PLC will get its revenue from 5 – 10% commission it collects from service providers. Besides, it gets additional revenue from the sell and installation of the tracking devices.
Hello Erf targets to serve the wheat growing farmers initially and expands to other cereal growers since they’re main users of mechanization in Ethiopia. Farmers using this solution are expected to have faster access to mechanization service with lesser cost. It will also reduce the cost they would incur as a result of delayed service provision. Hello Erf contribute to the wheat value chain by increasing the number of new service providers as it reduce or null their marketing and machine management cost which is one of the business entry challenge of the sector. Especially at this point in time the Agricultural mechanization under MoANR is working hard to introduce two wheel tractors to increase access to modern technologies of farmers and create job for unemployed youth. Having Hello Erf in the market will ease the biggest challenge of linking the service providers to their customers. There will be three main revenue streams to the company so that it makes profit to sustain and expand the service.
1. Sensor device sales and installation. The sensor devices will be imported by our company and will be installed on the machineries by our technicians. This will go hand in hand with one of our current mainstream business where we do the same for trucks and automobiles.
2. The second one is SaaS (Software as a Service). This is where we’re charging companies and individuals who are using our web application to track their asset on a monthly basis. Companies and individuals who only want to track their machineries but not enroll in the rental business will be subjected to this cost.
3. For individuals and companies who involve in the rental business Hello Erf will take its share of 5% of total revenue from each service. These sources of incomes directly from the service we provide will sustain the business and can continue to give and expand the service locally and internationally.
Connect Trading PLC
+251 913 097251