Blue Apron May Need to Raise More Money Soon After Shrunken IPO

Re:Blue Apron May Need to Raise More Money Soon After Shrunk... by ghaff on Friday June 30, 2017 @04:03AM (#14669247)

Unfortunately I live a bit too far from the nearest major city to take advantage of a lot of this VC-subsidized gravy train. (There are a lot of deals floating around these meal kits but they're still not really a bargain.)

Another thing with Webvan--and we'll have to see how this plays out in the Food Delivery 2.0 phase we're in now--is that fresh food delivery really was a premium offering. But it wasn't clear how many people were willing to pay a premium for it. There are a lot of services people will buy if you sell them below cost.

Logistics, scale, and just learning what works and what doesn't may change all that. On the other hand, high-quality food delivered to your door is probably not going to appeal to your typical coupon-clipping Walmart shopper however efficient your operation is.

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Re:Blue Apron May Need to Raise More Money Soon After Shrunk... by michaelt on Friday June 30, 2017 @08:35AM (#14670314)

  Another thing with Webvan [...] is that fresh food
  delivery really was a premium offering. But it wasn't
  clear how many people were willing to pay a premium
  for it.

The premium doesn't have to be particularly high, in areas with a decent customer density.

In the UK, Ocado can deliver a full range of supermarket groceries without needing to mark up the goods, and with a delivery charge below ~$5 with a ~$50 minimum order. And they make a profit while doing it.

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Re:Blue Apron May Need to Raise More Money Soon After Shrunk... by ghaff on Friday June 30, 2017 @09:10AM (#14670446)

And Peapod is only about $10 (for orders over $60)--and that's with me being far enough out of a city that I can't get Instacart or most services of that type. An effective ~10% adder on prices that are probably not rock bottom is still more than a fair number of people will want to pay. But I agree it's hardly a 1%er luxury item.

I'd probably use Instacart if I could get it. I just didn't find Peapod all that compelling when I was using it because of an injury.

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