An alternative sanitation solution for the urban poor
Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.
Marketplace: Who else is addressing the problem outlined here? How does the proposed project differ from these approaches?
Isabel
Medem
x-runner venture
, BE, 10117 Berlin
, LI, Lima
1‐5 years
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When I met the founders of x-runner, I immediately loved the idea of a home toilet for the urban poor. I started to see the real potential when I began thinking about how to make a real business out of it and we came up with the entire pick-up system idea. By then I saw that our proposal has a huge potential, because we were designing a beginning-to-end solution.
Then in 2012 we ran a 50-family pilot project. 93% of users decided to stay with the toilet after the pilot ended and have been our paying customers since. That was a crucial moment to me, we had proven that x-runner’s solution is accepted by the actual end users, customers actively demand our product, are willing to pay for it and we are able to run this service effectively.
Sanitation and Hygiene, Water, Waste.
Customers of x-runner are urban poor in Lima – they have a home with dirt floors, send their children to school and have an income, but do not have access to water or sanitation. For decades, they have been promised by the government to receive sanitation and piped water.
To ensure a high impact, since day one, based on our marketing approach we met with the communities we wanted to reach and have jointly worked with the locals to develop the design of the toilet according to their needs.
The x-runner system offers a qualitative and safe toilet system, while costing users half as much as pit latrines, and assuring responsible sanitation to entire communities. In July 2012, x-runner launched a 60-family pilot project in a southern slum of Lima to validate the effectiveness of our product and service. 93% of users decided to stay with the toilet and have been our paying customers for over a year now. Until 2018 with 15,000 households, 10 million litres of water will be saved every month, and we will collect more than 500 tons of feces, which would otherwise go into the ground. Each household will save USD 200 a year, and more than 75.000 people will benefit from our system. Our goal is to become a replicable model that can easily be taken to scale to serve the 72 million urban Latin Americans who still lack access to improved toilet systems.
Our next goal is to produce and install an additional 500 toilets for customer households. With 3000 people using our toilets and servicing more than 500 households, we will reach operational breakeven, we will decrease our cost per user per day to 7 cents and our toilet design will be ready for mass production. We will achieve this goal by the end of 2014 completing four phases by concentrating on building a strong sales team, improving our compost, refining the design of our toilet and running an efficient payment system. Our collaborators are Sedapal (the public Lima-based provider for water and sanitation), the National Agrarian University of Lima, Zeaplast (a producer of biodegradable plastic bags) and the UPC Marketing department.
Our goal is to finance our operations through our own revenues, which is why growth is so crucial to our planning. Our business model focuses on recurrent revenue streams generated through our pick-up service model. We will break even financially after reaching 2 hubs and in 2018 be serving 15000 families, representing yearly revenues of 2.160.000 US$. Currently we are also looking for ways to charge a fee for our high-quality, organic compost.
x-runner is the first social enterprise I am pioneering, but I always stood out through my own initiatives (helping a woman in Ghana to run her own shop), my strategic way of thinking (developing strategies to generate awareness for social responsibility in business at the ESCP-EAP) and my leadership skills (motivating my microfinance team in Tanzania to be understanding with each individual but still meeting target achievements).