Many new developments at social enterprise Propel.
Three years ago, entrepreneur and former Facebook product manager Jimmy Chen set out to use technology to address a perennial problem for low-income Americans trying to feed their families: figuring out how much they have left in their monthly food stamp balance and how to make their benefits last longer. With that in mind, in 2016, his startup Propel introduced an app that allows people receiving benefits from the Supplemental Nutrition Assistance Program (SNAP)--the official name for the food stamp program-- to check their balances over their smart phones, do budgeting and look for discounts at stores.
“We want to help low-income Americans put food on the table,” says Chen, whose company is based in Brooklyn.
Now, Propel is teaming up with Quotient Technology, a Mountain View, Calif-based digital promotions, media and analytics company, to provide users with access to hundreds of discounts. When customers log onto the system, they can see digital coupons available from nearby retailers. Shoppers enter their loyalty card number or, in many cases, their phone number, into the app. Then they can click a button and load the deals into their account. The system connects to a retailer’s point-of-sale system, allowing the platform to analyze shoppers’ purchase history and other data to provide relevant coupons.
“We’ve been focused on food insecurity for many years,” says Quotient Executive Chairman and Founder Steve Boal. “This is an opportunity to bring savings to people who need it the most.”
Also, according to Chen, about 1 million people use the app at least once a month, twice the number of about a year ago. That growth is largely attributable to word of mouth, plus some public-private partnerships. For example, Santa Clara County recently started a program of texting food stamp recipients about the app.
Also a recent study conducted by the Harvard Business School showed that the app helped users avoid about a day of extreme hunger per month, according to Chen. (Extreme hunger was defined as having less than $5 to feed a family). The app also has tools allowing people to set up a budget and grocery lists. “Users tell us it helps them stretch out the benefits through the month,” says Chen.
About 45 million people get food stamps, according to Chen, and around 70% of low-income consumers have smartphones.
The app is called Fresh EBT, referring to the Electronic Benefits Card (EBT), the mechanism through which food stamp recipients get their benefits. The way to keep track of their balances typically has been to call a hotline or maintain a constant total of their grocery spending.
