Farmstead is expanding its popular Refill & Save program to make ordering groceries online more affordable. The online grocer is scaling the solution to more than 300 top grocery staples, up from the 25 products it initially offered when it launched the service.
“Online grocers and grocery delivery companies have traditionally struggled with profit margins,” said Pradeep Elankumaran, co-founder and CEO of Farmstead. “Farmstead changed the entire business model with custom-built AI-powered software for predicting demand, stocking precisely, and sourcing directly with brands to get the lowest prices. Our technology has enabled Farmstead to provide customers with low prices while still optimizing profitability so we can grow the business.”
Farmstead’s Refill & Save provides customers with recurring orders with significant discounts on certain staples, including milk, eggs, fresh fruit, fresh vegetables and bread. Farmstead automatically queues up customers’ recurring weekly orders ― customers can then add or delete any items for the week, or even cancel a weekly order entirely. Farmstead recently lowered its weekly order minimum for Refill & Save orders to just $20.
The service is built on the premise that most households buy many of the same things every time they shop. Providing user-centric digital products to support that behavior helps Farmstead predict demand, reducing its costs and improving efficiency, in turn enabling the company to reduce prices on certain staples while still making the business profitable.