AI-Powered Hungryroot Reports Revenue Surge
Hungryroot is taking root. The tech-powered delivery service focused on healthy eating reported that its revenue for the first half of 2023 soared 67% to hit $182 million. The company also revealed that it has achieved profitability for its fiscal year and shared that it is “set up for continued profitable growth” for the rest of the year and beyond.
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The New York-based service offers more than 600 grocery items and provides more than 6,000 nutritious recipes, using artificial intelligence (AI) to automatically fill users’ carts with products and dishes that meet individual health needs and tastes. Consumers provide the basis for AI suggestions through an onboarding quiz and ongoing engagement. Hungryroot’s algorithm uses data from more than seven million orders and more than a 100 million groceries sold.
"In 2019, we pivoted to become an AI-driven, truly personalized healthy grocery and recipe service," said Ben McKean, founder and CEO. "Since then, we've grown more than 10 times by using our AI to flip the traditional grocery shopping experience on its head, starting with a full cart instead of an empty one. Today, our AI selects two-thirds of what our customers buy, saving them time and worry, introducing them to delicious new foods and helping them accomplish their health objectives. The trust we've built with our customers through our experience sets us apart and has helped us drive profitable and sustainable growth."
As the company continues on a growth path, it is simultaneously investing in and testing more AI capabilities. "We've already redefined food at home, and with technology quickly evolving and an increased interest in how tools such as ChatGPT can positively impact customer experiences, we're eager to continue our leadership in the use of AI to provide value we know shoppers are hungry for,” added McKean.
The company also continues to add new items to its grocery portfolio, like chimichurri beef from Kevin’s Natural Foods and plant-based bacon from Hooray Foods.
