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Meal Kit Companies Struggle to Keep Customers

Price fatigue, cooking burnout challenge once-booming subscription model.

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Although meal kit services like HelloFresh and Blue Apron both enjoyed a boom in business during the pandemic, only one of those companies continues to thrive today. The video below explores the growing dominance of HelloFresh in the meal kit industry even as it struggles to keep customers, who mainly tend to cancel their subscriptions once the sign-on deals end. 

Questions:

  1. What are the benefits and drawbacks of HelloFresh’s strategy of using discounts to attract customers?
  2. Why is it easy for companies to enter the meal kit industry but difficult for them to scale up?
Author: NickelsMcHughMcHugh