I can't imagine there are two multibillion dollar food recipe delivery subscription companies.
Is this as crazy as I think it is?
Also, given the rate at which HelloFresh is throwing around free boxes and discount coupons and special offers here in Australia, I would be astonished if they're profitable at all.
Lets look at their "Classic Box" (https://www.hellofresh.co.uk/food-boxes/classic-box/), which is £39 a week for three meals. I priced up what I could see of the box contents using Hubbub (https://beta.hubbub.co.uk) - largely because I work there, and so know my way around, and it came to a little over £20, and that's without any real effort to match the portion sizes they're shipping, I could probably get it down to more like £15 just by buying just the amount of each ingredient needed for the meals being made, and going direct to the producer rather than via high street shops who are going to be adding their own margin.
That leaves, pessimistically about £20 to cover delivery, and the customer's share of central costs such as recipe development, packing, and the usual business expenses of a web based company. At the sort of volume they're doing, I could see them easily making 40% profit, and potentially more than that.
I'd be really surprised not to see quite a few companies pop up in the same sector, there are already a couple I know of, possibly targeting particular niches such as oriental food.
But restaurants have much higher real-estate costs, typically need more staff, need to stock a wider range of product... plus, product that spoils in customers' fridges was still paid for.
"Also, given the rate at which HelloFresh is throwing around free boxes and discount coupons and special offers here in Australia, I would be astonished if they're profitable at all."
If they're a high growth company in a niche with high growth competitors and sticky customers, being profitable at all would be a horrible move.
HelloFresh buys in bulk, so spices/nuts etc. are especially packed for one box. Which becomes really inexpensive if you serve the same kind of food world wide. This massive globalization is (or will be) their competitive advantage.