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Home Food Delivery’s Questionable Value, for Consumers and Investors

Shares of meal-kit company HelloFresh fell after it signaled a year of slow growth, bringing up old doubts about the value of home food delivery for consumers and investors.

  • Shares of meal-kit company HelloFresh fell 9% after it signaled a year of slow growth.
  • HelloFresh dominates the market for cook-at-home ingredient packages in the U.S.
  • Meal kits tend to be less expensive than eating out, but much more expensive than cooking from scratch.
  • HelloFresh spent 1.3 billion euros (equivalent to $1.4 billion) on marketing last year, yet still lost customers.
  • Food delivery companies wrestle with various forms of the same conundrum: Food is a huge market, but it isn’t well suited to e-commerce.
Home Food Delivery’s Questionable Value, for Consumers and Investors
Shares of meal-kit company HelloFresh fell after it signaled a year of slow growth. It isn’t the only food-delivery company facing an uncertain future.

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