Re:Munchery Shuts Down
by fipple on Monday January 21, 2019 @10:42PM
(#18965833)
The meal kit companies do have fundamental operating advantages which have yet to translate into a massively successful business. By offering customers only a limited choice of meals, they are supposed to achieve huge economies of scale. The problem is that perishables delivery cancels all of these out and then some.
This business will be won by operators with local infrastructure and no delivery... like selling meal kits at grocery stores, or prepared meals for family dinners at office cafeterias.
Re:Munchery Shuts Down
by cft on Monday January 21, 2019 @11:08PM
(#18965938)
Economies of scale means that the more customers you have, the cheaper it is to offer the service per customer. In this case, the cost basically remains the same, no matter how many customers you have.
Re:Munchery Shuts Down
by fipple on Tuesday January 22, 2019 @02:28AM
(#18966630)
I know what economies of scale are. When you are buying and prepping 100,000 of the same meal at once it is much cheaper than prepping 100,000 different meals.
This business will be won by operators with local infrastructure and no delivery... like selling meal kits at grocery stores, or prepared meals for family dinners at office cafeterias.