DINNER KITS LIKE BLUE APRON OFFER CONVENIENCE, BUT ARE THEY GOOD FOR THE PLANET

Accuracy score :
97%

DINNER KITS LIKE BLUE APRON OFFER CONVENIENCE, BUT ARE THEY GOOD FOR THE PLANET 

A slew of new dinner kits promise gourmet meals with a fraction of the effort. But at what cost?

MORE: https://psmag.com/environment/dinner-kits-like-blue-apron-offer-convenience-but-are-they-good-for-the-planet-or-our-waistlines

FACTS: BlueApron.com (NYSE: APRN) has 5 years of revenue growth at 10-15% per year, currently at 880 million usd(2018). 

 

2. BlueApron uses plastic for seasoning and sauce packets and to enclose food products. 

3.BlueApron eliminates the chopping time (15 mins), grocery shopping time (40 mins), and recipe thinking time (10 mins) per meal. Total of 60 mins is saved. 

4. BlueApron's average meal takes 40 minutes to cook. 

5. BlueApron serves all of the 48 states in the U.S. using fedex to deliver packages, with manufacturing resources in NJ, and CA. 

Analysis: BlueApron is very convenient for the working parent. Usage of plastic is alarming but could be slowly adapted to use foil with a seal in the future. Plastic usage has always been rampant in any type of delivery service including takeout. Domino's Pizza usage of cardboard has been the most efficient environmentally wise for delivery. BlueApron's cost per meal at $9 USD is not cheap though but compared to eating out and elimination of restaurant additives, it is a safe alternative. 

 

Time saved is the most important feature of BlueApron 

Conclusion: Buy APRN once cashflow positive in 2021 (it is not cashflow positive as of 2018 or for the near future 2019 or 2020), which could take a few years due to a) $high cost per meal at $9 will reduce expansion to lower markets.