OwlChain uses blockchain to self-regulate food safety
e-commerce platform vendor OwlTing has integrated Blockchain technologies into its supply chain infrastructure. The company claims to have launched the world's first Ethereum-based food provenance system.
Through partnership with top-quality vendors like Nice Garden and Upwelling Ocean, OwlChain is bringing together transparency, immutability, integrity and deep domain expertise for various food supply chains, creating a new benchmark for better food safety in the world.
From Silicon Valley to safe food e-commerce business: OwlTing Market builds partnerships with local farmers and qualified food suppliers based on the vision "to provide the best for the kids"
As part of the OwlTing new vendor on-boarding process, OwlTing founder Darren Wang (photo right) drove around Taiwan and visited each production premise to select qualified vendors.
"We are extremely meticulous when it comes to food. Product with additives, artificial coloring or flavoring cannot be sold on OwlTing. While this business approach may seem unwise and cumbersome, our approach has identified over 1,500 farmers and merchants, and that's just in Taiwan," said Wang.
Average customer ticket on OwlTing exceeds US$60 per order, and more than 20% of its users are customers with recurring milk subscription services. OwlTing's incentive program allows users to earn rewards with social recommendations. This has enabled a high customer retention rate of 70%.
On Average, customers come back and place orders every 15 days. In addition to choosing fine products for consumers, OwlTing Open Market created a new distribution channel for farmers in Taiwan.
"Farmers can earn more money by working with us," said Wang, "with increased income and better brand awareness, they can reinvest in their businesses, creating more jobs and better products."
One example is the Changhua-based Chu-En Farm. After working with OwlTing Market for ten months, the farm owner is able to purchase more than 30 pregnant milk cows and increased milk production capacity by 15%, the first major capital investment in 30 years.
"OwlTing consumers prefer natural and organic food ingredients, and they are willing to pay for high quality at reasonable prices. While most e-commerce platforms charge farmers with annual fees for product listing, OwlTing farmers pay zero annual fees and are only charged a low commission for each product sold on our platform. We want to help farmers earn more, so they can invest in their future," said Wang.
OwlTing Map integrates detailed dairy and fruit product profiles with geophysical info, allowing consumers to have a "god's eyes view" on high-quality producers and place orders on the map. AI chatbots were developed for handle customer inquiries on Facebook. OwlTing has also enabled various mobile payment rails, including Apple Pay, so that consumers can finish checkout in just two seconds.
Wang came up with the idea for using Ethereum blockchain technologies to revamp food provenance systems. Leveraging the consortium blockchain infrastructure developed by AMIS, a founding member of the Enterprise Ethereum Alliance, and partnership with top-quality vendors like Nice Garden and Upwelling Ocean, a transparent, immutable and more secure food provenance system for different production processes has become possible.
Blockchain technologies emerged in 2015 as an important area attracting significant investments from global financial institutions and leading manufacturers to build prototypes and related experiments in recent years. As blockchain technologies will soon exit the "proof of concept" phase, more enterprise applications are to be deployed in the real market.
OwlChain uses blockchain to create a tamper-resistant food provenance and open its API to vendors around the globe. More Taiwanese vendors from different sectors are expected to join the platform, including Taiwan Agricultural Global Marketing, Sinhong Soy Sauce, Ming-Chuan Dairy Farm, With Heart Meat Shop.
In the future, OwlChain will also develop more solutions to other sectors, such as fine ingredients importers/exporters and logistics service providers. All participants will collaborate to build an open supply chain provenance system that can shed light on each step of the production and distribution processes, allowing more informed decisions by the public with regards to choosing better and safers products.
"Blockchain-based supply-chain network services are getting more attentions from internet and fintech investors around the world," said Thomas Hu, founder and CEO of Kyber Capital and a strategic investor of OwlTing and AMIS.
"OwlTing and AMIS have combined their R&D capabilities in e-commerce and FinTech to build OwlChain, a new platform with huge business opportunities. This showcase has proved once again Taiwan's leading talent for Blockchain innovations. Kyber will continue to help OwlChain commercialize and expand to global markets," he added.