Thesis

The idea was to create a system to reduce plastic cup pollution in public spaces by introducing a vending machine-like product that provides reusable cups, cold drinking water, and a washing mechanism. This system aimed to be placed on beaches, in malls, and at universities. The concept involved a deposit system to incentivize return and offered potential revenue streams through partnerships with municipalities and businesses, as well as advertising on the machines. The goal was to create a profitable and impactful solution that addressed the significant issue of disposable plastic cup waste.

Validation

Our five-member team, formed through a Jewish-Arab collaboration accelerator focused on impact-driven projects, identified that plastic cups constituted approximately 50% of pollution in the city of Eilat – confirmed through municipal meetings and our direct waste observations. We developed an all-in-one vending machine concept to address cup waste in high-traffic areas like beaches, malls, and universities. Market research revealed no direct competitors with technological automation, only indirect solutions in Germany’s event services sector.

We conducted validation across three parallel segments:

For consumer validation (B2C), we surveyed hundreds of people at beaches, malls, and among friends and family, discovering that consumers avoid disposable cups due to cleanliness concerns, and prioritize access to cold water – a potential incentive for our solution.

For municipal validation (B2G), we found multiple municipalities had allocated substantial budgets (millions of shekels) for environmental solutions, with two municipalities expressing interest and beginning paid pilot planning.

For business validation (B2B), 30+ interviews with business owners revealed our solution could save them time, space, and costs, while offering advertising potential as a revenue stream, particularly with chain businesses rather than SMBs.Simultaneously, we were working on the solution itself – the machine. We estimated development costs at approximately 120,000 NIS for the machine and tens of thousands per unit for manufacturing, depending on materials and volume. Our operational model leveraged automation with minimal maintenance staff.

Consultation with a major plastic manufacturer focused on durability (minimum 500 wash cycles) and versatility for various beverages and temperatures.

An investor from the accelerator expressed serious interest in funding our concept despite team conflicts.

Why it didn’t progress 

1. Internal Team Conflict: Despite seemingly positive validation and “green lights all the way” that we received, the primary reason for the project’s lack of further progress was internal team conflict due to disagreements regarding roles and responsibilities, leading to the eventual departure of two members. 

2. Loss of Momentum and Erosion of Team Spirit: Although three of us attempted to continue, the momentum was lost, and the team spirit diminished. I still believe this was a missed opportunity due to team issues, as the core idea and its validation appeared strong.

Insights

1. Team is Everything: The importance of team dynamics and the challenges of working with unfamiliar individuals were significant hurdles in our case. Clarifying and setting expectations well ahead is a crucial foundation for every team. Even a strong initial idea with positive validation across different stakeholders (B2G, B2B, B2C) does not guarantee success without a cohesive and functional team.

2. Think Globally Early: Scaling internationally was identified as the key to significant profitability, whereas the initial focus in Israel was driven by both impact and potential business viability.

3. Discovering the Cross-Value Factor: Identifying added-value features – like free, cold water – can significantly boost adoption and engagement for both businesses and end-users. This insight only emerged after conducting extensive user surveys that revealed real pains and needs.

4. Dual Impact: Balancing environmental benefit with business viability is essential in impact ventures.

5. Data Wins: Data-driven decisions help navigate ego and uncertainty.

6. Immerse Yourself: One of the most valuable steps we took during validation was deeply embedding ourselves in the ecosystem we aimed to impact. It helped us think locally, make smarter decisions, and stay grounded in reality.

Resources

Tzalul Report on Plastic Waste

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