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Why Too Good To Go's Business Model is so successful?

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Too Good To Go’s Company Overview


Too Good To Go is an innovative and socially responsible company that aims to reduce food wastage globally. Founded in 2015 in Denmark, the company has created a unique platform where restaurants, cafes, bakeries, and supermarkets can sell their surplus food at a lower price instead of throwing it away. Too Good To Go operates in several countries across Europe and North America, making it a significant player in the fight against food waste. The company is committed to creating a world where food produced is food consumed, and it does this by connecting businesses with unsold food to consumers willing to buy it at a reduced price.

The business model of Too Good To Go revolves around the mobile application that connects food businesses with consumers. The app allows businesses to list their surplus food items, and consumers can then purchase these items at a discounted price. The food is often sold in 'Magic Bags' - the contents of which remain a surprise until pick-up, adding an element of fun to the process. This model not only helps businesses reduce their food waste and related costs but also enables consumers to access high-quality food at lower prices.

As for the revenue model, Too Good To Go charges a commission fee from the businesses for each transaction made through the app. The fee is a percentage of the total transaction value. This commission-based model allows the company to earn revenue while providing a valuable service to both businesses and consumers. The business also generates income through partnerships and collaborations with other companies and organizations that share its mission to reduce food waste.

https://www.toogoodtogo.com/

Headquater: Copenhagen, Denmark, EU

Foundations date: 2015

Company Type: Social enterprise

Sector: Consumer Services

Category: Waste Management

Digital Maturity: Digirati


Too Good To Go’s Related Competitors



Too Good To Go’s Business Model Canvas


Too Good To Go’s Key Partners
  • Food retailers
  • Restaurants
  • Cafes
  • Bakeries
  • Hotels
  • Supermarkets
  • Food distributors
  • Environmental organizations
  • Local communities
Too Good To Go’s Key Activities
  • Developing and maintaining the mobile app
  • Partnering with food retailers and restaurants
  • sourcing surplus food
  • Managing logistics
  • Marketing and promoting the platform
  • Educating consumers about food waste
Too Good To Go’s Key Resources
  • Technology infrastructure
  • Partnerships with food retailers and restaurants
  • Logistics and supply chain management
  • Marketing budget
  • Team of developers
  • Customer support
Too Good To Go’s Value Propositions
  • Reduced prices on surplus food
  • Supporting local businesses
  • Reducing food waste
  • Enjoying good food at a lower cost
  • Helping the environment
  • Trying new food from local establishments
Too Good To Go’s Customer Relationships
  • Eat well
  • Save Money
  • Save the Planet
  • Giving Food a Second Chance
  • Make a Difference
  • You choose what to eat
  • The store chooses for you
  • App-based only
  • Trust
  • Cooperation
Too Good To Go’s Customer Segments
  • Environmentally conscious consumers
  • Individuals looking for affordable food options
  • Local businesses seeking to reduce waste
  • Food retailers and restaurants looking to manage surplus food
  • Food vendors
  • Retailers
  • Bakeries
  • Grocers
  • Restaurants
  • Supermarkets
  • Hotels
  • Event organizers
  • Producers
Too Good To Go’s Channels
  • Mobile app
  • Online platform
  • Social media
  • Targeted advertising
  • Partnerships with food retailers and restaurants
  • Word of mouth
Too Good To Go’s Cost Structure
  • Platform development and maintenance
  • Logistics and supply chain management
  • Marketing and advertising
  • Employee salaries
  • Insurance and licensing costs
Too Good To Go’s Revenue Streams
  • Commission on sales of surplus food
  • Potential revenue from partnerships with food retailers and restaurants
  • Donations and sponsorships

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Too Good To Go’s Revenue Model


Too Good To Go makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • Two-sided market
  • Transaction facilitator
  • Collaborative consumption
  • Sharing economy
  • Crowdfunding
  • Sustainability-focused
  • On-demand economy
  • Reverse auction
  • Trash to cash
  • Cross-selling
  • Data as a Service (DaaS)
  • Digital transformation
  • Online marketplace
  • Open innovation
  • Crowdsourcing
  • Disruptive trends
  • Ecosystem
  • Innovative retail banking model
  • Sponsorship
  • Donation-based
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Too Good To Go’s Case Study


Too Good To Go's CASE STUDY

In the bustling corridors of Denmark in 2015, a small, innovative idea was birthed, aimed at tackling one of the world's most pressing issues—food waste. This idea soon became what we know today as Too Good To Go. Our journey with this company, particularly their unique model and remarkable success, is nothing short of inspirational.

Company Origins and Vision

Too Good To Go was founded with a crystal-clear mission: to create a world where food produced is food consumed. The ambitious founders saw an opportunity in connecting consumers with unsold food from restaurants, cafes, bakeries, and supermarkets. The model was simple yet transformative—enable businesses to sell surplus food at a lower price instead of disposing of it. Since its inception, Too Good To Go has expanded its footprint to several countries across Europe and North America. Their robust growth is a testament to the pressing need for sustainable consumption and effective waste management solutions. As of our latest insights, the company operates in 17 countries and boasts an impressive user base of over 37 million users. These figures are significant; they underline how societal values are shifting toward sustainability and waste reduction.

The Mobile App Revolution

At the heart of Too Good To Go's solution is its mobile application. This app acts as the linchpin in the company's business model, seamlessly connecting consumers to local businesses with surplus food items. Once a restaurant or a café lists its surplus items, consumers can purchase these options at a fraction of their original cost via the app. The thrill of the 'Magic Bags' concept, where the content of the bag remains a surprise until pick-up, adds an element of adventure for the consumer. It's a treasure hunt of sorts—one that has resonated deeply with millions. Over 52.9 million meals have been rescued through these Magic Bags, combating food waste while offering consumers high-quality food at reduced prices. This data, sourced from the company's internal reports, underscores the impact and popularity of Too Good To Go's model.

A Win-Win-Win Model

Too Good To Go's revenue model is built on a commission-based approach. For every transaction facilitated through the app, the company charges a nominal fee from participating businesses. This model has proven sustainable for all stakeholders involved. Business owners benefit from decreased waste disposal costs and the ability to monetize what would otherwise be lost. Consumers enjoy access to affordable, quality food, and Too Good To Go earns revenue for offering a valuable intermediary service. What sets Too Good To Go apart is its multi-faceted approach to partnerships and collaborations. By working with environmental organizations and local communities, the company magnifies its impact and reach. Combining these efforts with effective use of social media and targeted advertising, such as using Instagram to share success stories and data, Too Good To Go has consistently grown its user base and partnerships.

Social Responsibility and Community Impact

Too Good To Go is more than just a mobile app; it’s a movement. The business leverages its platform not only to reduce food waste but also to educate consumers about sustainability. This commitment is evident in their ongoing campaigns and partnerships with schools and community centers to spread awareness on food waste. The company’s influence extends beyond individual consumers to include systemic change. Collaborating with government bodies and other stakeholders, Too Good To Go advocates for policy changes that support food waste reduction initiatives. According to data from the UNEP Food Waste Index Report 2021, about 931 million tons of food waste were generated globally in 2019. Too Good To Go is working tirelessly to bring these staggering numbers down.

Expert Endorsements and Market Validation

Too Good To Go's innovative approach has caught the attention of leading experts in the field of sustainability. Francesca Allievi, a food waste specialist at the Barilla Center for Food & Nutrition, emphasizes, Too Good To Go offers a practical and scalable solution to one of the most significant sustainability challenges of our time. Their model can serve as a blueprint for other regions grappling with the complexities of food waste. Moreover, the company’s efforts have been recognized with numerous awards and accolades, including the Danish Design Award and the United Nations Champions of the Earth Award. These endorsements validate the company’s mission and demonstrate its impact on a global scale.

Customer-Centric Innovations and Future Prospects

We've seen that customer needs are at the core of Too Good To Go's strategies. By focusing on functional benefits like cost-saving and time efficiency, coupled with emotional advantages like affiliation and belonging, Too Good To Go addresses multiple aspects of consumer behavior. Looking forward, Too Good To Go plans to double its impact by expanding into new markets and innovating its technology infrastructure. This will allow the company to streamline logistics and enhance user experience further. In addition, prospective partnerships in data sharing (Data as a Service) and cross-industry collaborations can unlock new opportunities for growth.

Conclusion

Too Good To Go is a beacon of what modern businesses should aspire to be—innovative, socially responsible, and deeply impactful. Its unique model has not only transformed the approach to food waste but has also created lasting value for consumers and businesses alike. Through persistent dedication and ingenious methodologies, Too Good To Go proves that sustainability can go hand-in-hand with profitability, setting a precedent for future enterprises. As we reflect on the story of Too Good To Go, it's clear that the fight against food waste is gaining momentum, and businesses like this one are leading the charge. The success of Too Good To Go is a compelling case study in aligning commercial success with social good.


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