Following HelloFresh’s acquisition of Green Chef, the meal kit company has now overtaken Blue Apron’s share of the market. HelloFresh controls 36 percent of the market, while Blue Apron only controlled 35 percent in February, Recode reported.
Blue Apron’s share of the market fell from 48 percent in February of last year. In comparison, HelloFresh’s share increased from 24 percent last year, according to Earnest Research. Still, even without HelloFresh’s acquisition of Green Chef, Blue Apron was struggling to keep customers and its warehouses.
Prior to the acquisition, Green Chef had been in operation for about four years. It was founded by CEO Michael Joseph to deliver vegan and gluten-free food to the masses.
“We were the first certified, organic and gluten-free meal kit company in the U.S., an important distinction to consumers who are committed to eating organically or are sensitive to gluten,” Joseph said in a statement. “With HelloFresh, we will only further amplify our mission to give consumers across the country a simple way to eat and live healthier.”
HelloFresh focused on the big bump the acquisition would offer its logistics operations. “The acquisition of Green Chef will drive synergies for operations, logistics and procurement,” the company said. “HelloFresh will gain its first office and production facility in the state of Colorado and integrate Green Chef into its operations and culinary teams.”
The meal kit business isn’t purely an eCommerce play. Walmart has begun selling meal kits and “one-step meals” in more than 250 of its brick and-mortar stores. The retailer plans to bring the meals to 2,000 of its locations in 2018, CNBC has reported. The meal kits are designed to serve two people and sell for $8 to $15. Walmart customers can buy them in the store or through the retailer’s online grocery pickup service.