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Household deliveries of PAYGO LPG

Investor RersourcesHousehold deliveries of PAYGO LPG
What is it?
  • Circle Gas has a network of local distribution depots which offer home deliveries of gas to customers so that they have LPG ‘on tap’. They are staffed by teams of technicians, delivery riders, sales and customer service agents
  • The depots are in dense urban areas with high use of charcoal and kerosene, including informal settlements
  • Depot staff remotely monitor customer consumption and mobile money payments through proprietary Smart Meter hardware and software technology. Deliveries can happen before customers run out of gas and customer service issues can get resolved 24/7 and 365 days per year
Gain Creators

For the Company:

  • Each distribution depot aims to be financially self-sustaining, giving discipline and structure to the operational expansion of the business
  • The constant visibility of the depot within the local community builds brand awareness and customer trust
  • Strong contact and data flow from local customers through the depot makes managing customer gas consumption and use of equipment feasible

For the Customer:

  • The pay-as-you-go facility makes cooking with LPG accessible to a wide spectrum of households, even those on low incomes
  • These ‘last yard’, local distribution depots provide a convenient option for customers living within, for example, a 2-kilometre radius of the depot
  • Depot staff safely install Circle Gas LPG ‘kits’ (stoves, 12-15kg cylinders and Smart Meters) in the homes of new customers, at no cost to the customer
Pain Relievers

For the Company:

  • Depot staff proactively collect and deliver cylinders for refilling, minimizing cylinder losses
  • Remote monitoring and a customer care team provides strong information to understand customers on a household-by-household basis, allowing data-driven insights on customer segmentation and ensure LPG is used as the primary fuel

For the Customer:

  • Customers only pay for the LPG they use, with no upfront deposit or cost
  • The installed kit generally contains enough LPG for 2-3 months use; the customer does not waste any time on fuel procurement and no physical effort is needed to carry cylinders (or other fuels) home
  • Close proximity to customers and their local community provides assurance to residents that any issues will be fixed
  • Trained Circle Gas staff do safety checks in customer residences during each home visit
Related Innovators

Other ventures that have developed a PAYGO-enabling meter for LPG include:

  • PayGo Energy

Other ventures that offer household deliveries of LPG to low-income users include:

  • Bboxx