TechCrunch reports that meal kit business Blue Apron “is introducing a lower-cost version of its meal kits, initially only for Jet.com shoppers in the greater New York City metro area. The new recipe kits, called “Knick Knacks,” still require refrigeration, but require customers to supply their own protein and produce to complete the meal. But by dropping the two most expensive ingredients from the meal, the company has brought the price down to $7.99, compared with prices that ranged from $17 to $23 for the meal kits that launched on Jet last fall.”
- KC's View:
Blue Apron certain has been through the wars, but it seems to me that these kinds of moves should be able to provide it with a more sustainable business model. The combination of being marketed through Walmart/Jet and coming up with a kit option that a) is lower cost, and b) should last longer because it doesn’t have perishables to worry about … well, these just seems like a lot more attractive option. The focus on urban markets - starting in New York, and likely to spread to cities like Boston, Philadelphia and Washington, DC - also strikes me as smart.