![]() Perhaps the company is hoping that customers will stay around and renew their subscriptions. That works out to about $10 per serving, which isn't too expensive - but after WW's cut, is there enough left over for profit? The meal cost is reportedly the same as Blue Apron's existing two-person plan in which subscribers receive three recipes delivered weekly for $60. It seemingly makes the two businesses a good fit, and Blue Apron can use a little bit of the Oprah magic that the WW spokesperson and investor brings to the table.Īlthough the financial details weren't disclosed, Dickerson told The Wall Street Journal that Blue Apron will pay WW a small fee for every subscription it receives from a member. Its customers are looking for specific meal components and having them available without needing to worry about whether the food will ruin their diet. That's why Blue Apron hopes a partnership with WW holds potential. With direct-delivered meal kits more expensive, less flexible, and not in tune with the impulsive way many people approach the dinner menu, Blue Apron saw increasing numbers of customers opt for competing meal kits that could be purchased in supermarket freezer cases. The real problem has been that the meal kit delivery model upon which Blue Apron was founded has fundamental shortcomings. Although many blame for wrecking the meal kit maker's potential after announcing it was buying Whole Foods Market just before Blue Apron's IPO, the e-commerce giant has thus far had little practical impact on the business. Since going public, Blue Apron has struggled in convincing the market it can be a viable business, let alone one worth investing in. But WW has been down this meal kit road before, and I see nothing to suggest this time will be any more successful.Įxposure to millions of potential customers The market certainly is hopeful, as Blue Apron stock has jumped more than 50% since the partnership was revealed.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |