Subscription meal delivery services like Sun Basket, through which consumers get weekly ready-to-cook meal ingredients, are becoming increasingly popular among internet-savvy Millennial foodies who don't have time to stop at the grocery store every day. However, most of these services have limited delivery ranges due to a lack of distribution centers. With a new funding boost, though, Sun Basket is opening another distribution hub, allowing it to serve 98 percent of the US population.
Before receiving its $15 million in funding from Vulcan Capital, a VC firm, Sun Basket had two distribution centers: one in California and one in New Jersey. With these two locations, the company reported that it could get its organic meal ingredients to 80 percent of Americans. With a third center, Sun Basket will be able to satisfy 98 percent of American foodies' cravings for organic, gourmet meals.
Far-Reaching Meal Deliveries
'Sun Basket' Delivers Organic Ingredients to 98 Percent of the US
Trend Themes
1. Expansion of Meal Delivery Services - As meal delivery services like Sun Basket expand their reach through new distribution centers, there will be opportunities for disruptive innovation in logistics and supply chain management.
2. Growth of Organic Food Market - With the rise of subscription meal delivery services like Sun Basket that focus on organic ingredients, there will be opportunities for disruptive innovation in organic farming and food production.
3. Increasing Popularity of Subscription-based Services - As more consumers turn to subscription meal delivery services like Sun Basket, there will be opportunities for disruptive innovation in subscription-based models for other industries.
Industry Implications
1. Meal Delivery Services - The meal delivery service industry will continue to grow as distribution centers expand, offering opportunities for new players and innovative business models.
2. Organic Food Production - The demand for organic ingredients will continue to increase as meal delivery services like Sun Basket focus on organic and sustainable farming practices.
3. Subscription-based Services - Subscription-based services will become more widely adopted as consumers continue to seek convenience and personalized experiences, leading to innovation in industries ranging from health and wellness to entertainment.