Since the German meal-kit service, HelloFresh, went public late last year, the company more than doubled its customer base in the United States. This is thanks to its wise investment in marketing, which has propelled the business forward surpassing its biggest competitor— Blue Apron.
“HelloFresh’s customer base also grew to 1.5 million globally, making it much bigger than Blue Apron, whose customer base shrank 15 percent to 746,000 due to lowered marketing spending,” as reported by “Recode.” It’s important to note that “HelloFresh includes customers who’ve received free boxes toward its customer total while Blue Apron only counts paying customers,” which obviously adds to its overall customer count.
The American meal-kit company has struggled ever since it announced its IPO around the same time the tech giant, Amazon, announced it was acquiring Whole Foods Market. Blue Apron also experienced many operational problems which were attached to the expansion of a fulfillment center in Linden, New Jersey. All these factors have contributed to the slow growth of the company and as it adjusted to become more automated, it did not help Blue Apron chose to cut its marketing budget and implement a hiring freeze.
In the meantime, sales for HelloFresh have grown exponentially, in comparison.
The Berlin-based company also expanded its customer base and food options with the recent acquisition of the organic meal-kit company, Green Chef.
According to “Recode,” “Neither company is profitable, but HelloFresh’s net loss is smaller and shrinking. Blue Apron’s is growing.”
As of the end of this trading week, March 23 at 5:36 p.m. GMT+1, HelloFresh was trading at €13.40, 23 percent above its IPO price of €10.25. In comparison, Blue Apron was trading at $2.04, 20.4 percent below its IPO price of $10, as of March 23 at 4:05 p.m. EDT.
To learn more read, “Recode.”