Too Good To Go

"Buy surplus food from restaurants and stores at one-third the original price in a 'surprise bag' without choosing contents."

Where it wins

• Price advantage: Users pay ~66% less than menu prices, making it an accessible sustainability play.
• Convenience & gamification: The app lists outlets within a chosen distance, allowing users to discover and purchase food on the go.
• Proven scale & trust: As of August 2023, it claimed 164,000 businesses and 62 million users, with 155 million bags of food saved.
• Environmental impact: The core promise is reducing food waste, a global problem affecting the environment, which resonates with conscious consumers.

Credibility: Wikipedia article on Too Good To Go, citing the company's own claims and financial reports.

• Two-sided marketplace: Connects food outlets with surplus inventory to consumers seeking discounted meals.
• Mobile-first delivery: The app facilitates discovery, purchase, and pickup, minimizing friction for users.
• Scalable unit economics: Each transaction is a discrete unit of value, with low marginal costs per additional user.
• Margin on commission: The company's margin comes from the commission taken on each sale, incentivizing higher volume.

Credibility: Wikipedia article on Too Good To Go, describing the app's operation and value proposition.

• OLIO: Another food-sharing app, but focuses on peer-to-peer sharing rather than business-to-consumer.
• Too Good To Go: Dominates the B2C surplus food market with a strong brand and scale.
• Local food rescue apps: Smaller, regional competitors with limited reach and features.
• Traditional discount retailers: Offer low-cost meals but lack the sustainability angle and convenience.
• Differentiators: Too Good To Go's scale, brand recognition, and focus on business partnerships give it a significant edge.

Credibility: Wikipedia article on Too Good To Go, comparing the app to alternatives.

• Food waste: Restaurants and stores discard surplus food, losing revenue and harming the environment.
• High meal costs: Consumers face expensive dining options, seeking affordable alternatives.
• Inefficient inventory management: Businesses struggle to predict and monetize surplus food.
• Lack of sustainable options: Consumers want to reduce their environmental impact but lack convenient tools.

Credibility: Wikipedia article on Too Good To Go, describing the problem the app solves.

Too Good To Go's wedge is the combination of sustainability and affordability, appealing to a broad consumer base. The main risk at scale is maintaining partner quality and ensuring food safety across diverse markets. The opportunity lies in expanding into new regions and product categories (e.g., plants, groceries). The next signal to watch is the company's ability to achieve consistent profitability, as indicated by its 2023 net profit of DKK 15.7 million.

Expand into B2B surplus food trading to serve larger retailers and distributors. Develop a loyalty program to increase user retention and frequency of purchases. Enhance transparency by providing detailed information about the food's origin and impact. Explore partnerships with food banks to donate unsold bags, further amplifying social impact.