Meal kit Blue Apron has lowered the price range for its upcoming public offering. In an updated prospectus, the company lists the maximum offered price per share at $11. Previously it was listed at a range of $15-$17. The new price suggests low demand for Blue Apron stock.
There are a number of factors why investors may not be interested. One, Blue Apron pays a very high cost to acquire customers. Secondly, there is a ton of competition and no clear winners. Third, meal kits may not be shaking up to be the grocery disruptors they were purported to be. While customers are increasingly becoming comfortable ordering food online, subscription packages of portioned ingredients and recipes don’t provide the full spectrum of grocery needs. And they’re inflexible to changing schedules (like when you’re out of town for the week). Such challenges prompted us to ask early on: Will Blue Apron even exist in five years?