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Blue Apron Breaks Ties with Walmart's Jet.com

Blue Apron Breaks Ties with Walmart's Jet.com

Thursday, August 8th, 2019

Blue Apron continues to shift strategies as it looks to regain its footing in the meal kit sector. One such strategy shift is its announcement that it would be terminating its partnership with Walmart-backed Jet.com., which began in October of last year. This partnership allowed the meal kit company to offer its full slate of items on the e-tailer’s online and mobile platform.

Recently, Linda Findley Kozlowski, President and CEO, declared on the company’s Q2 earnings call that she hoped instead to focus on Blue Apron’s “core business” of direct-to-consumer sales.

Linda Findley Kozlowski, President and CEO, Blue Apron“It's become clear that the more attractive opportunity for Blue Apron right now is in our core direct-to-consumer business,” Kozlowski stated. “The unit economics are strong in a direct-to-consumer model, avoiding many of the challenges as inventory management and shrinkage. We'll be wrapping up with our pilot with Jet.com in the coming few weeks. As we said before, Jet has been a great partnership through which we've built valuable on-demand competencies, many of which we are now applying for future considerations for our model. Right now, however, we need to focus our efforts on our core business, engaging with our customers week-in and week-out on our platforms through our direct-to-consumer service.”

Blue Apron announced that it is terminating its partnership with Walmart-backed Jet.com

She detailed the ways in which Blue Apron is seeking new customers, noting that the trend of eating fresh food at home continues to spike. This, along with the convenience of meal kits, are advantages for the company.

“While meal kits offer a broader, richer experience than just convenience, we think the best proxy for a serviceable portion of the market is online grocery purchases,” Kozlowski continued. “Based on the current percentage of households in America that are buying food online, we believe our serviceable market is approaching $9 billion.”

As the meal kit sector continues to shift in the wake of consumer demand, how will Blue Apron pivot? Deli Market News will report.

Blue ApronJet.com