Blue Apron's $2 BILLION CRASH
Companies like Blue Apron, HelloFresh, and Freshly all promised to revolutionize how we cook and eat… These meal kit delivery services seemed like the future of convenient dining just a few years ago.
One of the most popular ones was Blue Apron, which raised $193 million and reached a valuation as high as $2 billion. It just sold to a new food tech startup called Wonder Group for a mere $103 million. Blue Apron's stock is currently trading at around $80 million. It's lost a lot of money.
In a post-pandemic world, people are back to their regular lives which has led to fewer meals eaten at home, and these subscription companies are struggling.
For meal kit delivery startups, growth has stalled tremendously compared to 2020 record highs due to fierce competition, higher customer acquisition and retention costs, logistical challenges, and rising inflation across all categories of food.
In this episode, we'll delve into how these meal kit delivery companies got started and why they are doomed to fail.
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Loryn from Dark Mode Digest
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Video chapters:
00:00 Introduction to meal delivery startups
01:22 The early days of Blue Apron
03:19 The pandemic's impact on meal deliveries
04:32 Meal delivery startups failing
05:57 Why meal delivery startups fail
08:31 The future of meal delivery