Question

HelloFresh is at the forefront of disrupting a multi trillion-dollar industry at the very beginning of its
online transition. HelloFresh is a truly local food product, uniquely suited to individual tastes and
meal-time preferences offering delivery of a giant box of delicious food with recipes to enable easy
and enjoyable meal preparation for a weekly fee.
HelloFresh aims to provide each and every household in its 7 markets with the opportunity to
enjoy wholesome home-cooked meals with no planning, no shopping, and no hassle required. Everything
required for weeknight meals, carefully planned, locally sourced and delivered to your door at
the most convenient time for each subscriber. Behind the scenes, a huge data driven technology platform
puts us in the prime position for disrupting the food supply chain and for fundamentally changing
the way consumers shop for food. HelloFresh has local founders across the globe who are able to
leverage the global platform, and at the same time ensure that the HelloFresh product in each market
truly reflects the local community.

The soft subscription model business enables us to leverage our weekly subscriber touch points to
consistently manage supply chains and demand, and to optimize the customer experience as well as
our business economics. Customers sign-up for a box containing between 2 and 5 meals per week
for a flat fee. If the customer is out of town or unavailable he can easily cancel any week without a
penalty provided they notify HelloFresh in advance.
Dominik Richter has been CEO since starting HelloFresh in 2011. He has responsibility for keeping
a general oversight of the business and strategy. Prior to HelloFresh, Dominik worked with Goldman
Sachs in London. Dominik graduated with a degree in International Business in 2009, and from the
London School of Economics in 2010 with a Masters in Finance.
Thomas Griesel has been responsible for the logistics and operations behind HelloFresh since
founding with Dominik in 2011. Previously, Thomas had spent time at OC&C Strategy Consultants and
worked on a range of his own businesses and ideas. He graduated from with a degree in International
Business Administration in 2009, and from the London Business School in 2010 with a Masters in
Management.

2011
All the way back in 2011, Dominik and Thomas arrived in Berlin, intent on starting a new and disruptive
business. With a love of healthy food, nutrition, cooking, and a desire to make access to healthy food
as easy as possible for as many people as possible - starting a Food at Home business seemed the
natural choice.
2012
After examining business models from Sweden to Japan to very local ideas, they and a group of
like-minded individuals formulated the recipe for HelloFresh. The team started early in 2012 packing
shopping bags in Berlin, Amsterdam and London with a view to target the highest density population
areas in Europe. Quite quickly, they started getting requests from people outside those areas who all
wanted to become a part of the HelloFresh family. Wanting to serve as many people as possible, the
team developed a logistics model that enabled them to deliver to every single household across a
given country.
2013
The HelloFresh product started to rapidly gain in popularity, as subscribers shared the excitement
about their weekly boxes, with friends and colleagues. Subscriber referrals accelerated, as it became
clear that HelloFresh had finally solved the “What’s for dinner tonight” problem for its subscribers.
2014
Having launched on the East Coast of the U.S in December 2012, HelloFresh moved to cover the
entire country in September 2014. Over the short time since then, HelloFresh has grown rapidly to
become one of the largest players in this market.

Questions
1. Do you consider HelloFresh a form of disruptive or sustaining technology?
2. Is HelloFresh an example of Web 1.0 (ebusiness) or Web 2.0 (Business 2.0)?
3. Describe the ebusiness model associated with HelloFresh.
4. Describe the revenue model associated with HelloFresh.

Answer 1

Q 1.

Hello, Fresh is a form of disruptive technology.

“Disruptive technology is defined as a technology which changes an existing technology with a major change creating a whole new industry.”

The business of hello fresh ensured fresh food ingredients with a recipe for 7-night meals delivered on your doorstep. It saved the hassle of planning or shopping. The fresh home cooked food packet was delivered to your doorstep at the pre-assigned time. The customer had the option of canceling within a week without any penalty. The consumer could start with the option of 2 to 5 meals as per their convenience.

It disruptive the existing business model where the consumer uses a supermarket or online service to buy the ingredients. The consumer has to visit many different places and pick up the ingredients and then get then billed. The ingredients are then carted home and again have to rearranged at home. The customer has a top plan, prepare and purchase as per the recipe. Here all the ingredients as per recipe with good ideas are delivered to your doorstep.

Q 2.

Web 1.0 E-business is static and more for browsing, clicking, and shopping and has a restricted usage. Web 2.0 (Business 2.0) is interactive and participative web, the information on the page is dynamic and changes constantly, for example, Twitter is web 2.0.

Hello Fresh is an example of Web1.0 E-business as the shopper just browses and shops. He has the facility to place orders and cancel at his convenience.

Q3.

Hello Fresh is an E-business model, they have a website where the customer can sign up, browse and order pre-packed ingredients for 2 to 5 weekly night meals delivered to their doorstep. The order can be placed for a flat fee. They can request the packet at an assigned time convenient to them. The customer has the option to cancel in advance in case of sudden emergency or change in plans. The customer does not pay any cancellation fee if order canceled with due advance notice.

Q 4.

The Hello Fresh has a subscription revenue model as they sell in advance at a flat subscription fee and book orders in advance.

“Subscription model is defined as a model where the subscriber will access a service or product for a fee.” This model was initially used by magazines and newspapers.

Hello Fresh takes a flat fee and get people to subscribe to freshly packed home food ingredients with recipe door delivered at a pre-assigned time. The start orders from 2 to 5 meals for weeknight meals.