Blue Apron Breaks Tie with Walmart's Jet.com
NEW YORK, NY - As it continues to strategize, Blue Apron announced that it is terminating its partnership with Walmart-backed Jet.com. The partnership, which began in October of last year, allowed the meal kit company to offer its full slate of items on the e-tailer’s online and mobile platform. 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.
“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.”
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.”
Will Blue Apron take this opportunity to seek out another digital partner? AndNowUKnow will continue to report.