The world today experiences a variety of shipments and shipping processes from distanced transport, as freight transport includes physically transporting commodities, merchandised goods and cargo. Hellofresh SE. a German-based company provides online food services and pre-portioned ingredients. However, the Company delivers its services to customers from different geographical regions in shipments. Precisely, Hellofresh deals in delivery of subscription meal service to its customers in everything they need to cook, whereby, the Company handles everything, providing the customers with recipes easy-to-follow, carefully portioned. For fresh ingredients, they deliver them in insulated shipping boxes that are recyclable, once per week. Primarily, Hellofresh deal with six offered subscription plans: veggie, meat and veggies, Pescatarian, Quick and Easy, Family Friendly, and Low Calorie. Where two and six meals can be selected for either 2 or 4 people per week, with the ability of pre-selecting the kind of meals to receive. The working menus of Hellofresh are weekly published and previewed online, and the prices are equal across all its meal plans. Primarily all of the required ingredients are comprised of the meal shipments weekly, where fresh meat ships in containers that are vacuumed-sealed. The insulated boxes contain packs of ice to ensure components remain fresh.
Hellofresh delivers its products via selected regional couriers, FedEx, and UPS with an acceptable delivery price of between $9 and $10 per person, which is cheaper than eating in a restaurant but rather expensive than home dining (Katte et al., 2019). The Company does not deliver via U.S postal services, but their deliveries happen on Wednesday, Thursday, and Friday to all the customers. However, in specific areas, deliveries may arrive from Saturday to Tuesday. Hellofresh prefers shipping their ingredients due to different distributions and enquires from its customers. More so, to maintain the freshness of their parts, they pack them into vacuumed sealed shipping containers, given maintaining and preserving their products. Moreover, for easy sorting, they ship their ingredients in color-coded bags.
Demand for transportation
Transportation deliveries for Hellofresh products demand have a widely grown and expanded transport system of the products. The manager Hellofresh Elliot Jenkins says that Truckstops have diversely helped the Company’s increase in the scale of its in-house deliveries, though they require to increase their vans on the road to 50%. Therefore, a routing smart vehicle solution is scheduled and has rapidly helped Hellofresh in keeping the small prices of the progressively everyday “cook from scratch” home-delivered meal kits. Primarily, the fast-growing Company assembles its crucial constituents for a range of delicious meals, delivering them to the consumers across the country along with required instructions in recipe boxes. The convenient mode of transportation has been the use of Truckstops, which is a powerful scheduling system and user-friendly routing. Capable inefficient planning journeys for the business, differing from day to day system, which may include new clients who have never had contact to the products before. Moreover, the Company is developing its delivery van fleet, which they are already using in delivering products in the South West and London from a depot at Staines, Middlesex. The expansion of Hellofresh Company, transport delivery system, has led to Truckstops operation rollout in the Netherlands to make savings similar to those experienced in the United Kingdom.
Hellofresh can maintain its supply and customers due to the vast deployment of data analysis on how each of the customers interacts with the Company, to obtain more personalized recommendations and precise calculation. Helping the Company in determining when the customer requirements to receiving specific types of food over the other and when the customers require to collect their orders. Furthermore, the Company offers improved product selection to its customers, decreasing the product amount needed in meeting customers’ needs in satisfaction without wastage. Improved forecasting demand has enabled Hellofresh Company to maintain a significant delta between demand and supply. Hellofresh statistics indicate a revenue value of $257, with an increased gross profit of $154, which is a 55% increase. More so, the growth in revenue was driven by the development of an active customer base of 0.44 million increase, in line with the rise of the ordering rate of the customer ranging to $4.3. Region-wise, a considerable increment of 77% to $155 million indicated a double increase of active customers to 0.38 million within a year. Additionally, customer feedback is a crucial consideration for Hellofresh Company in shaping the inventory demand as well as innovation and growth drive, where it mines data from various sources, including surveys, customer orders, and browsing activities.
Hellofresh Company structure entails, Dominick Richer as the Co-CEO who was the founder member together with Thomas Griesel, who were both students. The pair proceeded to Berlin with the primary intention of establishing a disruptive business. The two recruited a small team and started stuffing shopping bags with requirements for heavy metals, where they targeted high-density population and gained recognition. The Company now operates a website through which management information passed through on the team, services, and international reach. The Company also controls confined websites in each of its effective dominions, serving at online sales (Guardiola Ramírez et al., 2019). The sites enable customers to browse menus and recipes, select subscription strategies. They succeed in costs and settings where similar functionality is available through the mobile app of the Company operating in android systems. Support team working customer care services provide ongoing support subscriber support. Through the services, customers are in the capacity of accessing personal assistance with issues of inquiry, delivery, and complaints, via contacting online support staff over the phone. However, the Company introduces online self-service that enables the customers’ make online payments without the need for interacting with the Company’s sales and Support stuff.
Hellofresh Company market has grown significantly across the whole of Europe, where they render their services. Thus the need to expand their already existing markets than entering new markets is the main Agenda for Hellofresh. Moreover, Hellofresh intends to make use of IPO, to invest in further growth systematically. Despite all the success and progress the Company has made, there has also been product competition from other companies rendering similar services. The companies include Home Chef Company that became popular due to the pre-measured elements packed in a well-designed environmental- friendly box, containing quick and classic meals, planned by cooks with worldwide cuisine influence. The boxes came in various sizes serving between 2, 4, or 6 adults, giving the best value. Competitions also extend to Blue Apron Company. The Company’s team prepares all recipes in a mode that anybody with the essentials cooking expertise may make in enjoyment. The Company deals with a proper nutrition plan, which helps its customers to lose weight, despite dealing with seafood, vegetarian, and meat. Blue apron is completely apparent about organic and free antibiotics ingredients sourcing and fantastic wine option. Furthermore, Green Chef companies also play a significant competition role in the market, where they deliver only natural, locally sourced food to their customers, giving it back in eco-friendly packing (Dixon et al., 2020). The Company is approved by USDA, featuring various types of recipes and menus, including vegetarian, paleo, keto, omnivore, and carnivore.
Hellofresh Company also experiences market failures despite the considerable profit and advancement created. For instance, the centers of the business model in charge of vending and transporting pre-packaged meal boxes, each comprising precise required ingredients for a particular meal, and measured seasoning. Moreover, the perishability nature of the food that is fresh in the kits puts the supply chain at risk in the market, as they avoid wastage of food about ensuring the supply of fresh ingredients packages, which creates a problem of the demanding nature of consumers. Since they have an expectation of receiving precise commodity, they enquired entailed with high-quality ingredients, delivered on time from the Supplier. However, market competition from other companies may lead to significant market failure. Competing companies such as the Blue Apron may render convenient services at lower prices compared to Hellofresh, thus affecting the consumer and demand of customers, which may lead to market failure. Moreover, since the order in Hellofresh is high, some customers may not have access to the required services and products, thus leading to market failure to the Company.
In general, Hellofresh Company has put all the required measures in reaching diverse customers across the whole of Europe, making significant development and growth. More so, they have technologically developed their service structure entailing online delivery, ordering, and payment without even directly interfering with the clients at any instance.
Dixon, J., Beaton-Wells, C., & Paul-Taylor, J. (2020). Consumer-citizens and Competition Policy in the Era of Supermarketisation. Jo, Consumer-citizens and Competition Policy in the Era of Supermarketisation (March 9, 2020). U of Melbourne Legal Studies Research Paper, (872).
Guardiola Ramírez, F. (2019). Towards Paper Insulation Packaging: Evaluation of Thermal and Logistics Performance. A Case Study at HelloFresh.
Katte, L. M. V. (2019). HelloFresh: a recipe for sustainable market leadership? (Doctoral dissertation).