Blue Apron
Everyone can be an at-home chef thanks to Blue Apron, the grocery delivery and recipe service established in 2012. The company went public in 2017 with a valuation of $1.9 billion — but its value has been falling ever since. Blue Apron reported net losses of $26.2 million in the third quarter of 2019.
Why Blue Apron Isn’t Profitable
Blue Apron’s marketing costs continue to rise as it struggles to attract new customers — while also struggling to retain the customers it already has, PitchBook reported. Plus, it’s expensive to pay for all the food and shipping costs associated with a meal-delivery service. In addition, Blue Apron has had to deal with an increasingly competitive space as more and more meal-delivery services have become available in recent years. Despite conducting hundreds of layoffs in 2017, the company has not been able to reach profitability.
With its stock prices steadily declining, it’s possible that Blue Apron may not survive long enough to ever turn a profit.
