Hungryroot, the US-based healthy grocery and recipe subscription service, has unveiled sales surged 67% to $182m year-on-year in the first half of 2023, driven by its AI-powered business model, with AI now selecting two thirds of what its customers’ buy.
Founded in 2015 by health entrepreneur Ben McKean, Hungryroot has become an AI trailblazer in the food industry, with its large-scale optimisation algorithm having been trained using data from over 7 million orders and over a hundred million groceries sold, to deliver a highly personal experience that consistently gets better and better over time.
Hungryroot has flipped the traditional shopping experience on its head by having customers start with a full shopping cart, rather than an empty one. Taking the strain out of food shopping, the endless choice and the dreaded question of ‘what to cook?’
McKean says alongside strong sales growth the company has achieved year-to-date profitability and is set up for continued profitable growth in 2023 and beyond.
How does it work?
Users are asked to take a short onboarding quiz to tell the platform about themselves and then its proprietary AI technology will fill their cart each week with healthy groceries and simple recipes (blending recipe discovery, food planning, and shopping) that best suits their needs and goals.
Through continuous engagement and AI tech that adapts over time the more you engage with it, this personalised experience will only improve with every visit.
“Today, AI selects two-thirds of what our customers buy…”
Ben McKean, Founder and CEO of Hungryroot
“In 2019, we pivoted to become an AI-driven, truly personalised healthy grocery and recipe service,” Ben McKean, founder and CEO of Hungryroot explains. “Since then, we’ve grown more than 10x 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,” he adds.
In addition to its proprietary AI technology, McKean says the company is continuing to explore new ways to further integrate AI into everyday business operations. “We’ve already redefined food at home,” says McKean, “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.
“Between recent enhancements made to our operations, digital, food, and delivery experiences, and the ones still to come, AI will continue to play a significant role in shaping Hungryroot’s future,” he adds.
As AI and the impact on society, business and human behaviour continues to dominate headlines, it’s an interesting model and one that could pave the way for other industries to follow. Arguably, a downside for many online fashion retailers is the sheer volume of choice, but if I had a highly personalised weekly basket packed full of the perfect edit for me, would I be tempted…I’m sure I would!
FURTHER READING
- TikTok trials new AI-generated content labels>
- 5 tips on how to set-up an AI company>
- AI: struggling to millions “It can be tricky”>
- The Scoop of Google Bard AI: 7 revelations you can’t ignore>
- 5 ways AI can boost the bottom line>
Have a great idea but need the money to get it up and running? Want to start building your investment portfolio? Or have a great start-up but need coaching to take it to the next level? We can help – get in touch to find out more.
