Blue Apron will also try to distribute its meal kits more broadly through partnerships. The company just declared that it will significantly pare back how much it spends on marketing, preferring instead to focus its efforts on the small core group of customers it already has who spend the most on the service. It costs too much to acquire new customers and they don't stick around very long after signing up - meaning the company has to continuously ramp up marketing costs to attract more people. That could indicate that the meal kits aren't a big seller regardless of the season, and could mean Blue Apron won't return to the warehouse club in the new year.īlue Apron understands its subscription-based business model isn't working.
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