AI-powered personalized grocery service Hungryroot reported $333 million in revenue for last year.
Hungryroot, the personal assistant for healthy living, has released its 2023 financial results. According to the company, it grew a staggering 40% year-over-year increase to $333 million in net revenue and generated more than $9 million in profit.
Highly personalized to support a range of household sizes, diets, budgets and preferences, Hungryroot delivers a range of nourishing groceries — fresh produce, premium meats and seafood, pastas, grains, sauces, and more — with simple, three-to-four ingredient recipes that can be cooked in minutes. It also offers prepared meals, smoothies, shakes, juices, healthy snacks and sweets, and essential vitamins and supplements. Customers can control exactly what they want, but the company said that customers trust Hungryroot to largely choose items for them. In fact, two-thirds of what customers buy is picked by Hungryroot's proprietary AI.
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"Our customers trust us to recommend and deliver healthy groceries, simple recipes and essential supplements to help them feel their best," said Ben McKean, founder and CEO of New York-based Hungryroot. "This saves them time and stress, helps them accomplish health objectives, discover new foods, and save money by ordering out less and reducing food waste."
This unique value proposition of health, convenience and discovery sets the company apart. According to Hungryroot, its service more convenient than grocery shopping, it's cheaper than takeout, and it's easier and quicker than a meal kit.
Customers seem to agree. The company has improved customer retention by 50% over the past two years. The average customer spends more than $1,000 in their first year with the service.
In January, Hungryroot launched its Best Price Program, which offers the best prices on popular brands, including Annie's, Koia, Once Upon a Farm, Sir Kensington's, Harvest Snaps and Unreal, among others.
"At Hungryroot, our work is centered on our customers' wellness," said McKean. "We help people feel better on a daily basis. That's why we do what we do, and it's ultimately what drives our success."