CARROT is a mobile wellness program that rewards people for meeting personal activity goals.
Its mobile app provides a tool for employers aiming to have their employees become more active. Essentially, the app enables employees to earn points and "digital currency" in exchange for physical activity.
Today, rising employer healthcare costs have motivated companies to invest in health and wellness initiatives.
As a result, corporate wellness services has grown into an $8 billion industry. On average, companies invest $700 per employee in these programs.
But getting employees to engage in wellness programs can be a challenge. Typically, most programs attract only the interest of employees who are in good physical condition already.
CARROT provides employers with a proven solution that helps even the most sedentary employees lead more active lives.
Here’s how it works:
Employers pay a $2,500 one-time setup fee and a $10 annual subscription fee for each employee.
Then, employees use the free, patent-pending CARROT mobile app to track their daily activity.
As goals are completed, employees earn virtual “CARROT currency.” This currency can be used to do the things such as enter workplace contests, or purchase digital gift cards.
In March 2016, CARROT launched a six-month pilot program with the Henry Ford Health System.
In just six weeks, CARROT achieved a 30% participation rate (six times higher than Ford’s typical participation rate in wellness programs). As a result, Ford cut the pilot short and signed a three-year contract to provide CARROT to its 25,000 employees.
Since then, CARROT has accumulated more than 60,000 users and signed contract with more than 15 companies worldwide. These include the Health Alliance Plan, United Auto Workers International and Oakland University.
On average, CARROT participants have increased their daily activity by 23% in the first 60 days.
CARROT has generated $375,000 in revenue and projects to become profitable 16 to 18 months after completing its current round of fundraising.
In addition to financial success, CARROT has received numerous accolades.
At the 2016 Detroit Business Health Care Leadership Summit, CARROT was named “Most Innovative Solution” by a group of 400 CEOs. That same year, CARROT was named a Google Days Regional Finalist.
In June 2016, CARROT was one of 32 companies selected to participate in a Small Business Roundtable. This event featured renowned investors Warren Buffet and Michael Bloomberg, as well as Twitter CEO Jack Dorsey.
CARROT was also one of 16 companies invited by Goldman Sachs to participate in a Small Business Coaching Session in New York.