The founders of Instamart have established a new global project called INS and plan to build a decentralised grocery shopping ecosystem based on blockchain technology.
The new project has already declared a non-binding MOU with Unilever and plans to raise US$60 million.
According to Persistant Market Research, the global grocery market will grow to US$8.5 trillion ($10.9 trillion) in 2020, with online sales expected to reach more than US$300 billion ($383 billion).
“The grocery industry in its current shape is inefficient and controlled by retailers,” INS co-founder Peter Fedchenkov said. “For example, in the UK, there are over 7,000 manufacturers and 25 million households dependent on four key grocery retailers controlling 76 per cent of the market. INS will adopt blockchain to cut the middlemen – wholesalers and retail stores – to help consumers save up to 30 per cent on grocery shopping.”
INS says it intends to build a scalable blockchain-based platform enabling consumers to buy groceries directly from manufacturers. It claims an online decentralised platform powered by a self-regulated community of shoppers and suppliers eliminates the retailers from the purchase process.
“Smart contracts help both parts to facilitate trade and reduce risks and costs,” the company said. “Any manufacturer can list and sell products, gain customer feedback and reward loyal shoppers. The first memoranda of understanding is signed with Unilever – one of the world’s leaders in FMCG. In addition to savings for customers, INS will put manufacturers in full control of product pricing and listing.”