Meal Delivery Service Hungryroot Hits $700M
Hungryroot, a meal delivery and healthy living platform, reported that its 2025 revenues grew 55% year-over-year to $700 million. The company, which also achieved another profitable year, credits its AI-powered "Healthy Living Assistant" with driving growth and retention.
- The company's growth has been accelerating, with reported revenues of $238 million in 2022 and $333 million in 2023, turning a profit of over $9 million in the latter year. - Founder and CEO Ben McKean pivoted the company in 2019 from a consumer packaged goods brand to its current AI-powered personalized grocery service model. - Hungryroot's AI technology personalizes customers' grocery carts based on an initial quiz and ongoing feedback, with the company reporting that its AI selects two-thirds of the items its customers purchase. - In a 2021 Series C funding round led by L Catterton, Hungryroot raised $40 million, which brought its valuation to $750 million at the time. - The service is designed to reduce the time spent on grocery shopping from a weekly average of two to three hours down to just a few minutes. - Customer retention has improved by 50% over the past two years, with the average customer spending over $1,000 in their first year, a figure 50% higher than other leading online grocery services. - The company competes in the U.S. meal kit delivery market, which was valued at $10.75 billion in 2023 and is projected to grow to over $30 billion by 2033.
