HelloFresh is considered disruptive as the business has over the years changed shopping for food and the supply chain process. The company specializes in providing and delivering local food products according to customers’ taste and preferences with a giant box of delicious food with recipes to enable easy and enjoyable meal preparation for a whole weekly fee. Customers sign-up for boxes containing 2 to 5 meals per week at a flat fee and are allowed to cancel the meals if they are unavailable or out of town without being penalized provided they inform the firm in advance (Bischof et al., 2019). Additionally, the firm optimizes customers’ experience through delivering to households the wholesome home-cooked meals experience thus prior planning and shopping for meals. The customers have the chance to experience local meals prepared using local ingredients that are healthy, nutritious, and easily accessible.
HelloFresh uses the subscription business model as the firm allows its clients to sign –up for a box containing 2 to 5 meals per week at a flat fee. Customers purchase the products at a constant price and can cancel their orders without attracting penalties, making a win-win situation to both the loyal customer and the company as the company does not incur loss or wastage due to order cancellation. Additionally, the business leverages subscriber’s touchpoints to effectively manage the supply chain and demand to optimize business functions as well as the customers’ experience (Braun et al., 2019). Customers promote the growth of the firm by sharing their excitement about their weekly boxes with friends and families thereby increasing subscriber referrals and thus providing the company with additional revenue. Moreover, buyers find a solution to the problem of what to eat for dinner as they get their weekly meals at a regular and affordable price thereby able to budget accordingly.
Bischof, S. F., Boettger, T. M., & Rudolph, T. (2019). Curated subscription commerce: A theoretical conceptualization. Journal of Retailing and Consumer Services
Braun, M., Latham, S., & Cannatelli, B. (2019). Strategy and business models: why winning companies need both. Journal of Business Strategy.