With busy lifestyles and the desire to eat healthy becoming the norm, there has been a fast rise in startups looking to solve that problem with healthy and easy to assemble meal kits delivered to the door. When Germany’s HelloFresh entered into the lucrative US market in 2012, it was up against some strong competition, including market leader Blue Apron, but with the companies latest quarterly report released on Monday, it is clear that the Berlin-based startup has risen to the top.
HelloFresh reported a 68.9-percent year-over-year growth in active customers in the first quarter of 2018 with 1.21 million subscribers ordering 26.5 million meals delivered to their doors.
This strong growth easily puts the company ahead of Blue Apron in the US as its rival continues to struggle with a reported 20-percent decline in its own first quarter.
“We got off to an excellent start in 2018 and continue our strong growth while consistently expanding our margins. As a result, we have strengthened our leading global position and made the barriers to market entry even higher for potential competitors. At the same time, we’re selectively expanding the variety and flexibility of our offering to fulfill even more of our customers’ wishes,” said Dominik Richter, CEO and co-founder of HelloFresh SE.
In March, HelloFresh announced that it would be buying out one of its smaller rivals Green Chef Corporation, allowing the company to only further its lead across the country and internationally.
As with most startups in today’s business world though, HelloFresh has yet to make a profit since launching in 2011 but the company states they are currently on track to reach break-even “on an adjusted EBITDA level” by the end of the year.