But many of the problems it faces aren’t unique, they are just uniquely observable due to Blue Apron’s relatively large size. Some of Blue Apron’s problems are unique - specifically operational and employee relations issues. As of this year, the stock price has not been above $20 a share since February, and hasn’t cracked $10 a share since May. Its share price on the day of its initial public offering (IPO) was north of $140. But the reality of the disruptive innovation hasn’t quite lived up to the hype, as those Blue Apron Q3 financials show.īlue Apron, of course, is still in existence - which is more than a lot of the follow-on meal kit businesses that entered the market in Blue Apron’s wake can say as of late 2019 - but its fortunes have been rocky since it entered the public market in the summer of 2017. and around the globe, the meal kit model was at first widely predicted to be the great disrupter for grocery stores created by eCommerce. Launched in 2012 and widely imitated in the U.S. The Q3 financials from Blue Apron come amid ongoing changes and expectations for the commerce area of meal kit subscriptions. “This transaction also aligns our financial covenants to our growth strategy, providing additional access to our liquidity which we believe will provide increased flexibility for us to invest as we drive towards growth in 2020.”
“We are pleased to have recently completed the refinancing of our revolving credit facility with our existing lender syndicate which we expect will support the continued execution of our growth strategy,” said Tim Bensley, Blue Apron CFO. Average revenue per customer was $258, up from $233. Average order value stood at $57.60, up from $56.79 for the same period last year. The company had some 1.7 million orders in Q3, down about 35 percent. Net revenue decreased 17% quarter-over-quarter largely reflecting seasonal trends in the business.” The company also posted a net loss of $26.2 million, a year-over-year improvement of some $7.7 million. According to the company, that decrease reflects “the company’s deliberate reduction in marketing spend while focusing on marketing efficiency and targeting high-affinity consumers. The third quarter of 2019 saw decreased revenue for meal kit subscription service Blue Apron, a company that is trying to gain new ground in this area of commerce.īlue Apron reported a 33 percent year-over-year decline in revenue, to $99.5 million.
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