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While Blue Apron charged a 69% premium, the cost per person per meal stood at US$ 8.99. It worked out to US$5.31 per meal per person.

The figure pertained to breakfast, lunch, and dinner. The company witnessed a 60% increase in its customer base from 649 thousand customers in Q1 2016 to 1036 thousand customers in Q1 2017.Īccording to the US Department of Agriculture, the average weekly food expenditure for a US family of four stood at US$297. The company shipped 8 million meals monthly. Total revenues as of 2016 were US$795.4 million. From 2014 to 2015, the company’s revenues increased by 338%. However the increased marketing spend resulted in a negative free cash flow for the company.Īccording to analysts, Blue Apron had experienced very quick growth. Between 20, the company spent an average of US$94 on acquiring each customer. Its marketing spend increased by 624% from US$8.37million in Q1 2015 to US$60.60 million in Q1 2017. A significant increase in offline media advertisement spend helped the company gain brand recognition among potential customers. In 2016, the company spent US$66 million on offline media, an increase of 267% from 2015. To attract new customers, Blue Apron continued to invest heavily in marketing (both offline and online). He/she eliminated the time spent on searching for a recipe and on shopping for the ingredients at grocery stores. The subscriber received these kits and cooked the meal at home. The 2-person plan was available for US$59.94 per week (US$9.99 per person) while the family plan was for US$139.84 per week (US$8.74 per person). Blue Apron offered two plans: a 2-person and a 4-person subscription, both with 3 meals per week. The company prepared food recipes, printed out these recipes, and delivered kits along with measured ingredients to subscribers’ homes. The company coordinated directly with farmers and many vineyards for the procurement of the ingredients and the wine. Themes: Business Strategy, EntrepreneurshipĪbstract Case Intro 1 Case Intro 2 Excerpts Excerpts Business Modelĭriven by the purpose of making home cooked food accessible to everyone, Blue Apron developed an integrated system to deliver superior quality products to its customers (See Exhibit I).