The overhead of food preparation, packaging, and shipping is also high. You can get a meal anywhere, but great recipes and enjoyment through cooking can come only with Blue Apron or HelloFresh as far as these companies are concerned. These companies are increasing that motivation by pitching their services as entertainment rather than just a meal. The high expense also requires more motivation. As the market becomes crowded, Blue Apron, HelloFresh, and all the others have to spend more to acquire customers. The lowest price they push new subscribers to, the $59.94 shown above, is double the solo willingness to pay.ĬAC and overhead are high for home meal-delivery kits. The lowest price for a Blue Apron meal kit (two recipes for two people) is almost double that at $47.95. Our data from 4,219 current, former, or prospective customers of Blue Apron and HelloFresh shows that the median weekly willingness to pay for a single individual is just $29.86. HelloFresh has a “Veggie Plan,” but Blue Apron has “Vegetarian options available.” Both companies know their customer.Īnd knowing their customer, they don't offer a solo meal-they know there is no money in it: The pricing is slightly higher with Blue Apron, but they also offer free shipping.
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