This is what I found on ABCNews.GO.com:
Meal kit companies face an ultimatum: Adapt or die.
The business is still in its infancy, with the biggest players — Blue Apron and HelloFresh — less than a decade old. But they’re facing serious challenges from restaurant and grocery delivery services, smaller niche players and even home chefs.
The struggle intensified Monday, when Blue Apron announced that it could be delisted from the New York Stock Exchange because its closing share price has been lower than $1 since early May. The company’s share price closed down 8% Monday to 68 cents.
New York-based Blue Apron said it will try to raise its stock price with a reverse stock split, which will be subject to a vote of its shareholders at the company’s annual meeting on June 13.
Subscription-based meal kit companies face numerous problems. For one, they appeal to a small population. NPD Group, a consulting firm, estimates that just 4% of U.S. consumers have tried them.
It also costs a lot for companies to prepare, package and ship fresh ingredients, so meal prices are high. And once kits arrive, subscribers still have to put the ingredients together.
“Meal kits are a more expensive but less convenient option for busy people who do not have time to cook,” said Cara Brosius, a market research analyst with Packaged Facts.
Brosius said meal kit customers have also complained about limited menu selection, poor quality of ingredients and too much packaging.
Blue Apron hasn’t made a profit since its 2017 IPO. It’s been losing customers, who quickly tire of its relatively high prices — $9.99 per serving for a two-person plan — as well as its subscription plan, which forces them to be less spontaneous. Blue Apron’s customer base fell 25% to 557,000 between 2017 and 2018.
Information provided by ABCNews.GO.com.
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