BUSINESS MODEL
Peko is building Canada’s #1 online grocery marketplace that delivers “peculiar” or surplus groceries at up to 40% off retail prices. We’re on a mission to fight food waste and promote access to affordable, healthy food.
In Canada, $3.1 billion CAD (~8% of all food wasted annually) of produce is rejected every year due to cosmetic reasons alone. Meanwhile, Canada is also experiencing the highest increase in food costs since 2010 (+$695/family). With excess food, nobody is winning. Farmers and distributors lose out on revenue, and people aren’t able to eat otherwise edible food.
Since May 31st, 2021, Peko has completed deliveries every Sunday, selling over 15,000 boxes (~$300,000 in sales), rescuing over 200,000lbs of produce, and saving our customers over $750,000+ on their grocery bills.
Peko benefits all of our stakeholders. We’ve partnered with farms and distribution centers across Metro Vancouver to rescue unsold fruits and vegetables, letting them recognize otherwise lost revenue, and people can now afford healthy, accessible produce for extremely low prices. Peko Produce enables consumers to access this otherwise wasted food. Our serviceable obtainable market (SOM) is currently the Metropolitan Vancouver Area, specifically millennials who are deal-inclined and primarily purchase groceries online, a market around $58.8m. Within the last year, demand for online grocery delivery has grown 41%, and continues to grow exponentially.
As grocery inflation hits all time highs, Peko is uniquely positioned to become a saving grace for many Canadians struggling to afford basic necessities. There’s no shortage of supply for us to take advantage of, and we are propelling our growth so we can rescue more. Food waste has never been a production problem; it has always been a distribution problem, and Peko is the first player in Western Canada bridging this gap.