Portable Benefits and Social Protection Platform (PERKS)

Kenya's booming platform economy, while offering opportunities for many, creates a harsh reality for a vast majority.  Despite comprising 80-90% of the workforce, informal workers, including gig workers, lack basic social protections. This translates to a life filled with uncertainty and vulnerability. Informal work is inherently unpredictable. Fluctuations in demand, competition, and platform fees often leave workers struggling to reach minimum wage, as highlighted in the 2021, 2022, and 2023 Fairwork reports. Even covering operational costs can be a challenge. Unlike formal employees, informal workers have no safety net. They lack access to crucial benefits like health insurance, pensions, and paid leave. This exposes them to financial hardship in case of illness, injury, or downtime. In addition, current Kenyan labor laws haven't adapted to the gig economy. Gig workers fall into a grey area, making it difficult to enforce fair treatment and ensure their rights are protected. Furthermore, with insurance penetration in Kenya at 1.2%, access to affordable healthcare remains a major concern. This lack of access further exacerbates the precarious situation gig workers face. The post-pandemic environment adds another layer of urgency. Job cuts have made affordable access to healthcare and social security even more critical for platform workers and their families. In essence, the problem PERKS is tackling is the lack of social safety nets for Kenya's gig workers. This exposes them to financial insecurity, limited access to healthcare, and a bleak outlook for their long-term well-being. PERKS aims to bridge this gap and empower gig workers to build a more secure and stable future.

Aligned with Qhala's mission to catalyze Africa's digital future, PERKS recognizes the platform economy as the future of work. We believe gig workers and independent contractors deserve access to the same benefits and perks as salaried employees, including health insurance, credit access, savings plans, and education coverage. A 2023 study showed that 50% of informal workers interviewed identified medical and education insurance as the most desired yet least accessible benefits, followed by asset financing. PERKS addresses this challenge with a unique solution that leverages the power of  communal sharing:

• Functional Units: We strategically organize independent gig workers into functional units, enabling them to collectively access a wider range of benefits.

• Insurance Premium Financing (IPF): PERKS partners with healthcare providers and a financial partner to offer IPF, making health insurance for gig workers and their dependents more affordable.

• Group Buying Power: Through our platform, gig workers gain group buying power, allowing them to negotiate better rates and benefits with health insurance providers.

PERKS aims to create a platform specifically designed to provide gig workers and independent contractors with access to essential social protection services and benefits. This includes health insurance, potentially expanding to other areas like credit access and education coverage in the future.

By providing a social safety net and facilitating business asset acquisition, PERKS aims to:

• Increase Platform Work Uptake: A more secure work environment with access to benefits can incentivize more individuals, particularly the unemployed and underserved communities, to participate in the gig economy.

• Create More Opportunities: Increased participation translates to more opportunities for both gig workers and the platforms they work with.

PERKS goes beyond simply offering benefits. We envision a future where platform work empowers individuals to build a secure and thriving future within the digital economy.

PERKS is designed to specifically address the challenges faced by  gig workers and independent workers who participate in Kenya's growing digital economy. Gig Workers are individuals who  earn income through temporary or short-term engagements with online platforms. Examples include ride-hailing drivers, delivery personnel, online tutors, and freelance writers. Independent workers is a broader category that encompasses individuals who provide services or  complete tasks  on a freelance basis,  often outside of a traditional employer-employee relationship.  This can include freelance photographers, social media managers, and virtual assistants.

PERKS recognizes that financial security and well-being are essential for gig workers and independent contractors to thrive. That's why we offer a comprehensive suite of benefits designed to address their specific needs:

Understanding that health insurance is a top priority, PERKS provides access to affordable healthcare through negotiated insurance plans. This ensures gig workers have peace of mind knowing they can access quality medical care for themselves and their dependents at any participating health center across the country. We don't stop there – PERKS also explores bundled insurance options that protect both personal and work-related equipment.

PERKS goes beyond physical health. We offer subsidized memberships for gyms, spas, and other curated activities, promoting a holistic approach to well-being and helping gig workers achieve a healthy balance.

Leveraging the cultural tradition of group savings, PERKS provides a  savings mechanism with incentives for long-term financial planning. This empowers gig workers to build a secure financial future and prepare for unexpected events.

We recognize that most gig workers are semi-skilled. PERKS provides opportunities to upskill through workshops and access to curated learning resources. This allows gig workers to continuously grow their skillset, enhancing their earning potential and competitiveness.

PERKS acknowledges the challenges gig workers face in accessing credit. We offer solutions like premium financing to help them overcome upfront costs associated with insurance plans. Additionally, we explore asset financing options, understanding that access to essential tools like laptops and specialized equipment directly impacts a gig worker's ability to perform their job effectively.

PERKS is a platform designed with the lived experience of the gig economy in mind. Many PERKS team members, including developers and business development leads, have themselves participated in the gig economy. This firsthand experience provides invaluable insights into the daily challenges and opportunities faced by platform workers. We understand the struggles of accessing benefits, the need for flexible financial tools, and the importance of a user-friendly platform. Our developers aren't just coding lines; they're crafting solutions based on real-world needs.  Through  regular user testing sessions with gig workers, we constantly gather feedback to ensure the PERKS platform is user-friendly, accessible, and addresses their specific requirements. This iterative approach ensures the platform remains relevant and caters to the evolving needs of the Kenyan gig workforce. 

PERKS' visionary leader, Dr. Shikoh Gitau, is a woman passionate about inclusivity.  This extends beyond gender to fostering a company culture that reflects the diverse communities we serve. This commitment to diversity ensures a well-rounded perspective when designing solutions for gig workers –  we consider not just the technology but also the social and cultural context.  Our lead engineer, Frankline Mogoi, champions inclusivity not just within the PERKS team but also in the platform itself. This ensures accessibility for all gig workers, regardless of technical background or location.

The PERKS team goes beyond shared experiences in the gig economy. Our developers, QA engineers, and business development representatives come from various backgrounds. This diversity allows us to approach challenges from multiple angles, ensuring the PERKS platform is not only technically sound but also commercially viable and caters to the specific needs of the Kenyan market.

PERKS is currently undergoing a pilot stage. The pilot allows us to test the core functionalities of the PERKS platform with a limited group of users. This real-world testing helps identify any potential issues with user experience, platform performance, or integration with partner systems. By gathering user feedback and data during the pilot, we can refine the platform to better meet the needs of gig workers and informal sector participants.In addition, the pilot stage enables us to validate the overall value proposition of PERKS.  With over 55,557 users already signed up, we're witnessing strong initial traction. This demonstrates the  platform's potential to connect vendors and insurance companies while attracting gig workers interested in accessing embedded benefits.  The transaction volume of over 3.5 million Kenya shillings further underscores the platform's potential to streamline business processes and facilitate financial inclusion. Furthermore, the pilot stage allows us to manage risk effectively. By starting small, we can identify and address any unforeseen challenges in a controlled environment. This mitigates potential risks associated with a full-scale launch and ensures a smoother transition when PERKS scales its operations.

PERKS is on a mission to revolutionize access to social benefits for gig workers and informal sector workers in Kenya. However, to fully realize our vision, we require support in several key areas:

1. Engineering Talent:

• Financial Barrier: We need additional funding to hire skilled engineers who can continue building and scaling the PERKS platform. This investment in our technical team will allow us to enhance the user experience, integrate with partner systems, and ensure the platform's robustness and scalability.

2. Strategic Partnerships:

• Technical Barrier: Building a robust partnership pipeline is crucial for embedding social benefits within the products and services gig workers use. We seek a strategic partner with expertise in connecting us with relevant insurance companies, vendors, and other stakeholders within the Kenyan/global market.

3. Legal and Risk Management:

• Legal Barrier: Navigating the legal landscape of social benefits and platform work in Kenya requires expert guidance. We require legal resources to ensure compliance with relevant regulations and mitigate any potential risks associated with our business model. This includes developing a comprehensive risk management strategy to safeguard the platform and our users.

How Solve Can Help:

Solve's unique network can connect PERKS with the resources we need to overcome these critical barriers:

• Funding: By connecting us with potential donors or investors, Solve can help us secure the funds needed to hire talented engineers and accelerate the development of the PERKS platform.

• Strategic Partner Matching: Solve's expertise in forging partnerships can put us in touch with organizations that share our vision and can help expand our reach within the Kenyan market.

• Legal and Risk Management Expertise: Solve's network may include legal professionals who specialize in the gig economy and social protection in Africa. These connections can provide valuable guidance on navigating the legal landscape and developing a robust risk management strategy.

PERKS revolutionizes how gig workers access social benefits. Our model sustainably reduces risk for gig workers by partnering with vendors and insurance companies that offer products and services gig workers use. We embed insurance into these products at a fraction of the cost, making gig workers less risky for insurance companies and creating a good economic model for our vendor partners. 

We are currently piloting a travel insurance benefit with one of the country's largest insurance companies and travel agencies. Users automatically receive travel insurance when booking through the travel agency, with the insurance embedded directly into the ticket. This allows gig workers to enjoy these benefits at a significantly reduced cost, from $100 down to less than $1. This substantial saving empowers gig workers to grow their skills and businesses. In addition, informal workers not classified as gig workers can also enjoy these benefits. This is because our solution is embedded into the existing products and services at no extra cost. 

PERKS envisions a future where gig workers and independent workers seamlessly access social benefits through the products they consume.

PERKS tackles the challenge of limited social benefit access for gig workers by creating a win-win-win situation.

We partner with vendors and insurance companies to offer gig workers embedded benefits within the products and services they already use. This can be travel insurance included in travel bookings or other relevant benefits depending on the vendor.

By lowering the cost of these benefits through partnerships (e.g., from $100 to less than $1 for travel insurance), gig workers are incentivized to participate. This increases the insured pool for insurance companies, making them more likely to offer benefits to gig workers in the future. Additionally, vendors gain access to a wider customer base through PERKS' platform.

Gig workers gain access to crucial social benefits they may not have been able to afford before. This financial security empowers them to invest in their skills and businesses, leading to increased income and stability. Furthermore, by making these benefits accessible through everyday purchases, PERKS removes barriers for informal workers who might not qualify as traditional gig workers. Ultimately, PERKS envisions a future where all workers in the informal economy can seamlessly access social benefits, fostering a more inclusive and secure work environment.

Extending insurance benefits – health, unemployment, etc. – to gig workers could have a transformative effect on the gig economy.  Currently, the lack of such safety nets can be a major deterrent for many, especially those with dependents.  However, with the peace of mind that comes with essential benefits, more individuals might be willing to take the leap into freelancing or entrepreneurship. This influx of talent could fuel innovation and job creation within the gig economy, as a larger pool of skilled workers attracts more businesses and fosters a more dynamic marketplace for services.

PERKS' impact stems from its ability to connect seemingly unrelated entities. By bringing vendors, insurance companies, and gig workers together, PERKS creates a sustainable ecosystem. Lower costs for gig workers incentivize participation, which benefits both insurance companies (larger insured pool) and vendors (increased customer base). This virtuous cycle fosters long-term social impact by making social benefits an accessible part of the gig economy and the informal sector as a whole.

PERKS is on a mission to revolutionize how gig workers and informal sector participants access social benefits. Our innovative solution tackles a critical challenge in the changing landscape of work, aiming to achieve significant social impact.

Impact Goals:

• Goal 8: Decent Work and Economic Growth: PERKS directly contributes to this UN Sustainable Development Goal by promoting decent work for gig workers and informal sector participants. By providing access to crucial social benefits like insurance, we empower individuals to invest in their skills and businesses, fostering greater economic stability and growth.

• Goal 10: Reduced Inequalities: PERKS works to reduce inequalities by ensuring all workers, regardless of formal employment status, have access to social safety nets. Our embedded benefits system removes barriers for informal workers, promoting a more inclusive work environment.

Measuring Progress:

• Number of Gig Workers and Informal Workers Benefited: This core metric tracks the direct impact of PERKS by measuring how many individuals gain access to social benefits through our platform.

• Increased Benefit Utilization: We monitor the uptake of specific benefits offered by PERKS partners. This demonstrates the value proposition for gig workers and informs future partnerships.

• Vendor and Insurance Company Growth: Tracking the number of vendors and insurance companies collaborating with PERKS highlights the platform's effectiveness in creating a win-win-win ecosystem.

• Reduced Cost of Benefits: We monitor the cost reduction achieved for gig workers through PERKS partnerships. This demonstrates the platform's ability to make social benefits more accessible.

PERKS goes beyond simply measuring numbers. We actively engage with users through surveys and focus groups to understand their needs and the impact of our solution on their lives. This qualitative data informs future platform development and ensures PERKS remains a relevant and impactful force in the evolving world of work. By focusing on these impact goals and utilizing a multi-pronged approach to measurement, PERKS strives to create a lasting positive impact on the lives of gig workers and informal sector participants, paving the way for a more inclusive and secure work environment for all.

PERKS leverages the power of cutting-edge web technologies to deliver a seamless and accessible solution for gig workers and informal sector participants. Here's a breakdown of the core technologies driving our platform:

• Nuxt.js: This robust JavaScript framework forms the foundation of PERKS. Nuxt.js offers several advantages for our solution:

  • Server-Side Rendering (SSR): Nuxt pre-renders web pages on the server, ensuring lightning-fast initial load times for users, regardless of device. This is crucial for mobile users who might be on slower connections.

  • Single-Page Application (SPA) Functionality: Nuxt allows us to create a SPA-like user experience, offering smooth navigation and interaction without full page reloads. This translates to a more responsive and engaging experience on mobile devices.

  • Responsiveness and Mobile-First Design: Nuxt.js embraces a mobile-first approach, ensuring PERKS automatically adapts its layout and functionality for optimal viewing on any screen size. This eliminates the need for a separate mobile app, reducing development complexity and maintenance overhead.

• Web APIs: PERKS utilizes Web APIs to connect and integrate seamlessly with our partners' systems. This allows us to retrieve and display relevant vendor information, process benefit selections, and potentially automate insurance claims (depending on partner integrations).

• Cloud Infrastructure: PERKS operates on a secure and scalable cloud infrastructure. This ensures our platform remains accessible and reliable for users across diverse locations.

PERKS understands the critical role mobile devices play in the lives of gig workers. By leveraging Nuxt.js and a mobile-first design approach, we guarantee a user-friendly experience for everyone, regardless of the device they choose to access PERKS. Nevertheless, PERKS is constantly evolving to meet the changing needs of our users. We actively explore integrating additional technologies like Progressive Web Apps (PWAs) to further enhance the mobile experience and potentially offer offline functionality.

1. Mobile App Developer: Responsible for designing, developing, and maintaining mobile applications.

2. Front-End Software Developer: Tasked with crafting the user interface and experience.

3. Back-End Developer: Manages the server-side logic, database integration, and ensures the smooth functioning of the application's core functionalities.

4. QA Engineer: Dedicated to quality assurance, conducting rigorous testing procedures to identify and rectify software defects.

5. 2 Business Development Officers: Engaged in market research, client engagement, and strategic planning.

6. Technical Lead: Serves as the team's guiding force, providing technical expertise, leadership, and direction.

7. Vision Bearer: Serves as the overall lead for PERKS.

PERKS has been under development for the past 3 years. We began working on this solution in April 2021, recognizing the need to empower gig workers and informal sector participants with better access to social benefits. Since then, we've been diligently building and refining the platform to ensure it delivers a seamless and impactful user experience.

PERKS is deeply committed to fostering a diverse, inclusive, and welcoming environment for all team members. This commitment stems from our core belief that a strong team is built on a foundation of different backgrounds, experiences, and perspectives. Dr. Shikoh Gitau, the CEO of Qhala, the parent company of PERKS, sets the tone for our inclusive culture. She is a board member of WIDEF (Women in the Digital Economy Fund) a global initiative that aims to identify, directly fund, and accelerate investment in proven solutions to improve women’s livelihoods, economic security, and resilience. In addition, her dedication to advocating for increased opportunities for women in tech has made her a respected figure across Africa. Her impressive background positions her as a role model for aspiring female leaders, particularly within the African tech sector.  Her passion for promoting gender inclusivity inspires the entire team and ensures a culture that values diversity and empowers all members. 

 Frankline Mogoi, PERKS' Product Lead, is another key figure driving inclusivity.  His diverse skillset in UX research, product management, and design thinking fosters a collaborative environment where all voices are heard and valued.  Together, Dr. Shikoh Gitau and Frankline champion initiatives that ensure equal opportunities and welcoming space for everyone on the PERKS team.

At PERKS, we prioritize talent above all else. We actively seek out and recruit exceptional individuals regardless of their race, gender, or any other factor not directly related to the job requirements. This ensures a talent pool that reflects the rich diversity of the Kenyan community we serve. We leverage data and research on diversity and inclusion to inform our hiring practices. We recognize that female executives and developers often outperform their male counterparts. By using data alongside traditional qualifications, we attract the most qualified candidates for every position, fostering a team with a wider range of perspectives and experiences. In addition, PERKS provides mentorship and training programs that support all team members in their professional development. This ensures everyone has the tools and resources they need to succeed, regardless of their background or experience level. Furthermore, we encourage open and honest communication within the team. This allows everyone to feel comfortable sharing their ideas and perspectives, fostering a sense of belonging and collaboration. Additionally, PERKS has a zero-tolerance policy for discrimination of any kind. We have clear guidelines and procedures in place to ensure a safe and respectful work environment for all.

PERKS recognizes that diversity and inclusion are ongoing journeys. We are constantly looking for new ways to improve our practices and ensure our team reflects the vibrant communities we serve. By prioritizing these values, we believe PERKS can build a stronger team, develop a more impactful solution, and ultimately empower a more inclusive future of work in Kenya.

Our business model revolves around providing impactful benefits and services to the populations we serve, while diversifying revenue streams to ensure sustainability and long-term success. Here's how it works:

• Impact on Populations Served:

  • Access to Benefits: In addition to allocating investment income to provide benefits, we can earn commissions from facilitating the purchase of insurance or financial products. These commissions may come from insurance companies or financial institutions, and they can be used to enhance the benefits offered to the populations served.

  • Financial Inclusion: Commissions earned from facilitating financial transactions, such as savings deposits or loan disbursements, can be reinvested into initiatives that promote financial inclusion. This may include providing financial literacy training, developing digital banking solutions, or expanding access to credit for underserved communities.

  • Social Protection: By earning commissions from corporate partnerships or group savings programs, we can further enhance its social protection offerings. This could involve increasing coverage levels, expanding the range of benefits available, or providing additional support services to help individuals navigate financial challenges.

• Revenue Generation:

  • Corporate Partnerships: In addition to revenue generated from providing social protection benefits, we earn commissions from corporate partners for facilitating employee benefits programs. This revenue stream is sustained by maintaining strong relationships with corporate clients and delivering value-added services that meet their needs.

  • Investment Income: Commissions earned from financial transactions, such as investment management fees or brokerage commissions, contribute to the business's overall revenue. This income is reinvested back into the business to support its growth and expansion efforts.

By integrating commissions into the business model, PERKS can diversify its revenue streams while continuing to provide impactful benefits and services to the populations it serves. This ensures sustainable growth and long-term success while fulfilling its mission of promoting financial inclusion and social protection.

Our plan for achieving financial sustainability involves a combination of revenue streams and strategic partnerships.

• Self-Funding: We initially self-funded our venture to cover startup costs and early expenses. This allowed us to bootstrap the business and develop our core products and services without relying on external capital.

• Building a Financial Model: We have developed a robust financial model that outlines our revenue projections, expenses, and cash flow forecasts. This model helps us make informed decisions, allocate resources effectively, and ensure that our revenue streams cover expected expenses in the long term.

• Commissions: One of our primary revenue streams comes from earning commissions through facilitating transactions and sales of financial products and services. For example, we earn commissions from insurance sales, financial product referrals, and investment management fees.

• UK Tech Hub Grant: We have successfully secured grant funding from the UK Tech Hub, which has provided a significant financial boost to our business. This grant has been instrumental in funding specific projects, research and development efforts, and expansion initiatives.

• Traction: We have demonstrated traction in the market through various metrics, including revenue growth, customer acquisition, and partnerships formed. For instance, we have acquired a growing number of customers who use our products and services, indicating strong market demand and potential for scalability. Additionally, we have formed strategic partnerships with reputable organizations, such as financial institutions and government agencies, which validate our business model and provide additional revenue opportunities.

Examples of our success to date include:

• Securing the UK Tech Hub grant, which has provided financial support for our business initiatives.

• Generating revenue through commissions from insurance sales and financial product referrals.

• Demonstrating traction in the market through customer acquisition and partnerships formed.

Overall, our multi-faceted approach to funding, coupled with evidence of success in revenue generation and market traction, positions us well for achieving long-term financial sustainability and continued growth.