Dive Brief:
- Blue Apron has made its meal kits available on Amazon.com in the U.S. without a subscription, according to a press release on Wednesday.
- On Amazon, shoppers can buy two- and four-person meal kits ranging from $50 to $80 that are fulfilled by Blue Apron.
- Blue Apron’s presence on Amazon continues the company’s push into expanding its third-party channel strategy to “increase exposure to a wider pool of potential customers outside of its ecosystem,” the release noted.
Dive Insight:
The debut on Amazon follows Blue Apron bringing its meal kits to Walmart.com a few months ago and builds on previous collaborations with Amazon.
The selection on Amazon includes Blue Apron’s Ready to Cook options, Family Favorites recipes and quick Heat & Eat meals. Amazon customers will also be able to buy Blue Apron’s limited-time, special occasion boxes, such as holiday options, the announcement noted.
For Amazon, selling Blue Apron’s meal kits expands the meal solution options on its site, said Janie Song, Amazon’s director of grocery and health & personal care.
“We hope this offering will inspire those new to cooking and save time for seasoned cooks looking for quick, convenient options,” Song said in the announcement.
Other direct-to-consumer, subscription-based meal kit companies have also turned to offering their goods for non-members on third-party marketplaces. Sunbasket, for example, started selling on Instacart last fall and, when Takeout Kits was operating, it made its meal kits available on Walmart.com in 2017.
Blue Apron noted that it has partnered with Amazon previously on making its recipe instructions available through Amazon’s voice assistant, Alexa.
Separately, Blue Apron has started selling digital gift cards for its meal kits through Costco’s website, according to an emailed announcement. The gift card rollout is happening ahead of the holiday season for shoppers seeking gifting options.
Blue Apron’s efforts to diversify its distribution channels and gain more eyeballs with online consumers come at a time when the company is trying to improve its profitability and financial position.
In its most recent earnings results, Blue Apron saw its net revenue increase slightly year over year to $124 million in its second quarter while recording a net loss of $23.1 million, up from the $18.6 million the company posted a year ago.
The meal kit company unveiled earlier this year a strategy to achieve adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) profitability in 2023 and positive free cash flow in 2024.
Blue Apron’s Chief Financial Officer Randy Greben, who had been working on driving growth and profitability measures for the company, plans to resign effective Oct. 17 and the role will be temporarily filled by Mitchell Cohen, an outside hire, until a replacement is found.
