How Decentralised Food Apps are Shaping the World

Who doesn’t love the odd takeaway or meal out in their favourite restaurants? On the grand scale of human history, restaurants and food delivery services are a fairly new phenomenon. They allow for a new experience in how they enjoy their favourite meals.

With advances in technology that enable us to conveniently enjoy these luxuries, restaurants and food delivery systems are becoming more popular. They’re more widely available to more remote regions of the planet. The food delivery industry is expanding and advancing at an astonishing rate.

According to abstract from the Department of Economics at Stanford University, the food delivery market has seen massive growth in the past five years. The past year has especially been significant due to the pandemic. The total US food delivery app revenue is projected to reach $43 billion by 2025.

The increasing popularity of smartphones and the adoption of technology are the main driving factors in the growth of the food delivery industry.

While for many of us these food delivery services are a luxury, for some, they are a necessity.

In developed nations, they often put little consideration into some of the problems that exist in the food industry on a grand scale. One of the main issues is food waste.

The Food Wastage Problem

They have all been guilty of food wastage from time to time, and they know that it is a massive problem in their society. Resulting in a gross waste of resources and an increase in costs. It is difficult to comprehend the mass scale on which food wastage exists.

A recent graphic and article from the World Bank put it into a haunting perspective. The amount of food wasted in developed and developing countries is enough to feed areas of the world that experience food shortages and famine.

Graphic showing the severity of food waste. Image via worldbank.org

Companies such as Goodr and Unsung are leveraging the efficiency of blockchain technology to reduce food wastage. They create networks that maximize the way that restaurants and food retailers can use meal creation and delivery business processes more efficiently.

Goodr provides an app that allows them to collect edible food that would normally go to waste and donate it to local non-profits.

Unsung’s app enables the pick-up of unwanted food from local caterers and restaurants and delivers it to the hungry.

The positive impact Goodr has been able to make by leveraging Blockchain Technology in its platform. Image via Goodr

Illness, Corruptions, and Scandals in the Supply Chain Industry

Along with food wastage, another major concern in the food industry is on the side of supply chain and inventory management. There is a need to ensure delivery shipments happen within a reasonable time frame.

The main culprits behind most foodborne illnesses are inefficient tracking, transport, and storage of food. When food illness occurs, traditional methods of food supply tracking are difficult and time-consuming.

Blockchain technology can solve this. The FDA Commissioner Scott Gottlieb even stated his support for companies to adopt blockchain tech. It can help trace outbreaks to specific farms or distributors and reduce outbreaks altogether.

It isn’t just foodborne illness concerns that exist at the centre of the supply chain industry. There are also cases of unethical practices and corruption reports as bribery and extortion are quite common.

The United Nations released an eye-opening report citing that the global cost of corruption is over 5% of the entire World’s total GDP.

This is where companies such as Athentium are making a stand. They are utilizing blockchain technology to restore economic power to primary producers. Their vision is to liberate producers, farmers, growers, and distributors from centralized exploitive supply chains.

Creating a world of peer-to-peer food supply chains by building an ecosystem that incentivizes it. Placing power and trust back into the hands of produce growers, farmers, and distributors.

Simplified diagram of how Blockchain increases supply chain transparency. Image via arxiv.org

Charities and Donations

Overall food wastage reduction and supply chain corruption have been addressed. But what about getting food into the hands of starving populations?

There are companies out there that have developed apps to tackle this issue.

According to statistics from World Hunger, 27.4% of the population in Africa is severely food insecure. Nearly four times as high as any other region. This report paints a terrifyingly bleak picture as this figure was actually on the rise from 2014 to 2016, increasing by about 3%.

Despite their best efforts, they have made little progress in ensuring food is making it into the mouths of the hungry. The need to end world hunger is just as critical today as it has ever been. Blockchain technology may finally provide the solutions needed to combat this inequality.

This is where projects such as Pieme are stepping in by providing a two-fold service.

One of the services offered by Pieme involves building a community through economic incentives. Aiming to bring people back to basics.

Humans are social creatures by nature, and for centuries have consumed meals prepared communally. A practice that is often forgotten in their modern, busy societies. Pieme provides an app that connects locals to other community members who can host locally prepared and authentic meals. They can do this right from their homes, giving people a chance to make new friends and build stronger communities. Pieme removes the need for third-party intermediaries for a truly decentralized peer-to-peer ecosystem.

Users of the app can also choose to locate participating restaurants anywhere in the world and donate money to that restaurant. This will then be used as a donation to prepare meals. Once meals are ready, locals in the area are notified via the Pieme app that a location near them has meals available for pickup.

This allows the global Pieme network of users to pool their resources and donate to meal preparation and distribution anywhere in the world. Empowering meal providers to serve their local communities. This effectively removes the need for third-party intermediaries and expenses.

An article highlighting the inefficiencies of traditional charitable organizations. Image via NPR.org

How Does Blockchain Improve Decentralized Food Apps Efficiency and Functionality?

Improved Reliability of Supply Chain

The use of blockchain technology can help optimize food delivery supply chains. It can organize and automate activities such as:
•Material procurement
•Order management
•Meal preparation
•Packaging
•Delivery

The verification and transparency of all transactions conducted on the blockchain can create a workflow that reduces chances of error and miscommunications. Streamlining business processes.

Seamless Commission Distribution for all Parties

Commission payments and disbursements present a challenge in the traditional delivery system. This is due to the multiple intermediaries involved.

Commissions can often eat away as much as 30% of revenue, increasing costs for everyone involved. The multiple intermediaries involved can be managed via the blockchain. Tracking all activities and in many cases reducing the number of third parties needed altogether.

Thus increasing profit margins, and reducing costs. Tracking activities can also uncover bottlenecks, inefficiencies, and any violations or delays.

Security Checks and Verification

Blockchain can help ensure strict security standards in the meal delivery ecosystem. While also increasing the security and protection of customer information and transaction data. There are even blockchain-based applications that can help ensure food is safe. This is done by detecting contamination of food items before they reach the customer.

Regulated Participation

Blockchain allows the use of smart contracts which can automate the verification of all involved parties. Smart contracts ensure that all parties follow industry standards and adhere to the process. Any parties who violate terms or face delays can be identified and have the issues resolved quickly and efficiently.

Increased Sales

Ease of ordering and tracking improves the customer experience. Leading to an increase in sales. Apps that use blockchain technology to streamline processes are more likely to have fewer delays. Resulting in a higher quality of food on delivery. Increasing the restaurants’ reputation and the likelihood of repeat customers.

Closing Thoughts

They have already seen the need for decentralized food apps that use blockchain technology. The benefits of blockchain adoption can no longer be disputed with the likes of Walmart, Microsoft, Amazon, and J.P Morgan adopting this tech. A report from Blockdata shows that 81 of the top 100 public companies in the world are already utilizing it.

Many people believe in a decentralized future such as Cardano founder Charles Hoskinson.. Charles gives a brilliant Ted Talk speech on why a decentralized future is inevitable.

Anne Connelly also delivers an inspiring Ted Talk on how a decentralized economy can bring the future of freedom and essentially “save the world.”

Countless companies are creating decentralized networks and systems striving to change the world. One of the industries that are seeing the highest level of activity is naturally the food industry.

Like the financial industry where corruption and scandals are no secret, the food industry also suffers from:

•Exploitation
•Slave wages
• Unethical practices

There is no doubt that the food industry needs evolution and more transparency in the entire process, from farm to plate.

Decentralized food apps, platforms, and systems are looking to provide these much-needed solutions. Revolutionizing the entire process and benefitting everyone. From those who grow the food to those who transport and distribute the food, and of course, those who consume the food.

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