In the past, a price difference might have been accommodated by charging more or less in delivery fees, but that is something that consumers have been socialized (by Amazon) to disdain. Even if costs did not vary, local market desire to pay different prices should be something that a national company could benefit from. But what are the root causes of some of these issues? And why might Blue Apron have been forced into a position that looks, at least temporarily, as impossible to improve?Ī problem faced by many mass market subscription services that deliver physical products (as opposed to digital products) is that costs vary depending on customer location and yet the company cannot easily assign different pricing based on location. We’ve seen their high CAC (customer acquisition cost) and customer retention problems. Their stock price is currently $2.15 (it was $10 on opening day). ![]() ![]() ![]() After a couple years of talking about Blue Apron in my classes and accelerators I thought I’d write of those thoughts down.īlue Apron is the meal delivery company that everyone loves to hate.
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