NCBA CLUSA and Direct Global/Direct Co-ops Sign MOU for an Ecommerce Platform
July 27, 2020 at 13:20 PM EDT
(PRUnderground) July 27th, 2020
A new partnership between Direct Global/Direct Co-ops and the National Cooperative Business Association CLUSA International (NCBA CLUSA) will enable co-ops and other small businesses worldwide to jointly purchase products, communicate, sell (retail and wholesale) and vote on co-op products and issues using an inter-cooperative platform that includes full ecommerce functionalities.
This partnership, formalized by an MOU on July 23, will support NCBA CLUSA’s mission to develop and advance cooperative enterprise around the world by enhancing the impact of its technical assistance and capacity-building activities—particularly those related to cooperatives’ commercialization, knowledge exchange and advocacy.
As part of the agreement, a pilot will be launched in Peru, starting with some of the farmer cooperatives NCBA CLUSA works with in that country. It will start with products such as coffee, cocoa and bananas and will expand to include other products such as grapes, asparagus, mangos, blueberries, giant white corn, quinoa and other Andean grains. The pilot will also seek to involve institutions such as the Ministry of Agriculture and the Ministry of Production so that more Peruvian organizations can benefit from the marketing platform.
Participation in the platform will be extended to other organizations interested in using it as sellers and/or buyers. While NCBA CLUSA will initially manage the Peru pilot, its management will ultimately be transferred to a forthcoming cooperative founded by interested users of the platform, including Peruvian cooperative apex organizations, which will use transaction fees to provide better and additional services to their member cooperatives. Upon the pilot’s success, NCBA CLUSA will work to expand the use of Direct Global/Direct Co-ops’ platform in other countries.
The platform will enable farmers to sell their products directly to US retail co-ops and small businesses through Direct Global/Direct Co-ops’ platform and global network, which includes the Commonwealth, China, the U.S.-Pacific Rim Chamber of Commerce and other partners. Through this collaboration, farmers will also gain the tools to become more efficient locally, helping them purchase products and vote on issues. This will help make fair trade and organic products more accessible to all.
“I am honored to work with NCBA CLUSA, an organization that has been a pillar of equality for over 100 years, representing over 120 million Americans, and standing at the forefront of social capitalism. This partnership with NCBA CLUSA is the only tangible chance we have with the economic disruption that has taken place, to bring justice to both co-op communities and small and medium-sized businesses in this new age of economic uncertainty”, said Ahmed Attia, President and CEO of Direct Global/Direct Co-ops.
Alex Serrano, Senior Vice President of International Development at NCBA CLUSA, said the organization was thrilled to partner with Direct Global/Direct Co-ops. “Access to an ecommerce platform has never been more critical. This platform will enable us to be more effective in how we link small farmers to markets, helping them and their cooperatives better navigate a post COVID-19 world.”
About NCBA CLUSA
The National Cooperative Business Association CLUSA International (NCBA CLUSA) is the primary voice in the United States for people who use cooperatives to build a better world and a more inclusive economy. Founded in 1916, NCBA CLUSA strives to develop, advance and protect cooperative enterprise through cross-sector advocacy, education and public awareness that help co-ops thrive, highlighting the impact that cooperatives have in bettering the lives of individuals and families. Internationally, NCBA CLUSA has worked in over 100 countries building resilient communities, creating economic opportunities and strengthening cooperatives. Our work is guided by an approach that empowers smallholder farmers, women and youth in the areas of food security, agricultural development, strengthening of communities and farmer organizations, community-based health and natural resources management.
About Direct Global/Direct Co-ops
Direct Global is a technology company focused on developing and operating platforms that allow purchasers to leverage their collective purchasing power to reduce the cost of procuring raw materials, finished goods and services.
The company’s proprietary web-based platform enables medium and large corporations to harness their collective purchasing power to reduce purchasing and shipping costs. The company’s subsidiary, Direct Co-ops, focuses on helping small and medium-sized businesses. Direct Co-ops has developed a web-based platform that works with local business associations and others to connect local small and medium enterprises and enable them to aggregate orders for goods and services from local and national manufacturers, suppliers and service providers. By consolidating shipping, the company helps participating businesses reduce the environmental impact of their supply chains. Direct Global /
Through Direct Global/Direct Co-ops’ founded Local Driver Co-op, led by Torsten Kunert (the “Rideshare Professor”), drivers will receive 90% of the revenue and ownership in the platform, which will allow consumers to save 20% (versus the incumbents) while still paying the drivers more than what they currently make. In addition, the platform enables and encourages communication between the members and the group leaders, allowing them to vote on the issues that matter the most to the drivers, ensuring that the drivers’ voices will always be heard. In the future, the co-op through its equity structure will be able to finance driverless vehicles on behalf of its members, further securing the future of the drivers in the age of automation.Press Contact
Original Press Release.