16. February 2017 | Press release
DPD Germany delivers for HelloFresh and positions itself in the e-food segment with "DPD Food"
DPD Germany targets the high-growth, online food retailing sector with a tailor-made delivery solution
With DPD services HelloFresh, the leading international shipper of food boxes, offers its German customers guaranteed fast delivery and maximum information flows
New "DPD Food" product to be launched in summer for further shippers of groceries
Aschaffenburg, 16 February 2017 – With a newly developed industry solution for online food retailing, parcel and express service provider DPD Germany is positioning itself as a premium shipping partner in a high-growth market segment. HelloFresh, the international market leader in the shipping of food boxes, is the first customer to use DPD's customised combination of express transport and delivery forecasts precise to the very hour. Under the name "DPD Food" DPD will later this year be offering further customers a service which is made-to-measure for the specific requirements of grocery shippers.
"We are convinced that online grocery retailing has enormous potential – in particular when consumers receive their groceries quickly, conveniently and simply“
Andreas Reß, Director Sales & Customer Service at DPD Deutschland
"We are convinced that online grocery retailing has enormous potential – in particular when consumers receive their groceries quickly, conveniently and simply", explains Andreas Reß, Director Sales & Customer Service at DPD Deutschland. "I'm delighted that we are now able to offer grocery retailers in e-commerce a high-quality industry solution which meets the requirements of quality-conscious shippers like HelloFresh." Nils Herrmann, Vice President Operations at HelloFresh, adds: "In the case of fresh foodstuffs in particular, it is essential for deliveries to be reliable and fast. In addition we require a partner in this field who can match our level of flexibility and service. Our trial runs have demonstrated that features such as the one-hour delivery forecast and online, map-based shipment tracking ensure a high level of punctual deliveries – wherever our customers are in Germany."
One day before the customer's requested delivery date HelloFresh sends the passively cooled boxes to DPD, which then delivers them express the next day at the agreed delivery time – in a perfectly chilled and fresh condition. Because of the innovative cooling technology of the parcels, transport in refrigerated lorries is not necessary. Thanks to DPD's Predict service, on the morning of the delivery consignees receive an SMS or email informing them of the precise hour during which the shipment will reach them. In addition they can follow the progress of their delivery with DPD's online, map-based live tracking function. If DPD does not locate the consignee at home, an alternative delivery is made in line with the consignee's instructions. For this purpose many HelloFresh customers specify a secure place to deposit their food box (for example in the garage). If in spite of this the delivery does not reach the consignee in good time, DPD donates it to a welfare organisation which checks the condition of the goods and then distributes good quality groceries for a charitable purpose.
From the summer of 2017 "DPD Food" – DPD's industry solution for grocery shipping – will also be available to further customers from the food segment. The new product combines DPD's Express and Predict services, offering fast delivery within a guaranteed time window. This delivery forecast, which is accurate down to the last hour and can be tracked live online, makes a decisive contribution to ensuring that the goods reach the consignee at the first delivery attempt. In addition DPD makes sure that parcels containing fresh products are only transported in a well-cooled condition. If it is not possible to deliver a shipment within a maximum of two days, the goods are immediately returned to the consignor. As an option they can also be passed on to a partner charity, which can make good use of good quality foodstuffs.
Strong growth forecast for online food retailing
According to GfK 1 food retailing accounts for almost half of all consumer spending, at 48.5%. Although at present only 1% of this volume is generated on the Internet, the online sales of groceries are predicted to rise significantly from €1.1 billion in 2014 to an annual €7 billion by the year 2025. During the same period the proportion of the "foodstuffs and drugstore articles" segment in overall online retailing is expected to double from 8% to 16%. A study by the Bitkom 2 digital association indicates that at present 28% of all German online shoppers have already ordered groceries on the Internet at some time.
HelloFresh supplies tasty and healthy meals direct to the home, with step-by-step cooking instructions and fresh ingredients in just the right portions. HelloFresh takes care of the stress of planning meals and shopping, which enables subscribers to eat more healthily while improving their cooking skills. At the same time it avoids the waste of foodstuffs in the household and along the entire supply chain.
Customers can select between three and five meals per week, each with ingredients for two or four persons. Every week there is a selection of different and varied recipes, divided into four categories: "Light and tasty", "New discoveries", "Vegetarian dishes" and "Quick and easy". This enables subscribers to decide for themselves whether in a particular week they wish to pick out their favourite food or put together a box chosen at random from all the available recipes.
At present HelloFresh has operations in the USA, the UK, Germany, the Netherlands, Belgium, Australia, Austria, Switzerland and Canada. In the three-month period up to 30 September 2016 HelloFresh delivered 22.1 million meals to around 850,000 subscribers. HelloFresh was founded in November 2011 and has its HQ in Berlin, with further offices in New York, London, Amsterdam, Zurich, Sydney and Toronto. The company's present investors include Baillie Gifford, Insight Venture Partners, Phenomen Ventures, Rocket Internet and Vorwerk Direct Selling Ventures.