Blue Apron drops subscription model for some meal kits sold at Walmart.com
Shares of Blue Apron Holdings Inc. jumped more than 11% in the extended session Wednesday after the company said it will make some of its meal kits available through Walmart Inc.’s WMT, -2.47% Walmart.com marketplace without charging customers for a subscription.
Blue Apron APRN, -6.97% said that its “collaboration” with Walmart.com’s marketplace, effectively immediately, gives the company access to a “new group of customers” and removes a barrier for people to try its service.
“This is just the beginning, and we look forward to expanding the offering throughout the year,” Blue Apron’s Chief Marketing Office Dani Simpson said in a statement.
The meal kits will be directly fulfilled by Blue Apron, “maintaining the efficiency and scale of the company’s direct-to-consumer model and strong supply chain,” the company said.
Blue Apron offers several meal subscriptions at different prices, depending on number of servings and styles chosen in advance, such as fast preparations, kid-friendly, and others. It also charges shipping.
Blue Apron last month announced a $70.5 million capital infusion from a long-time investor in the company and others, and late last year launched a “heat and serve” meal option.
The company saw demand for its meal kits soar earlier in the pandemic amid public-health stay-at-home orders, hitting a GAAP adjusted profit in the second quarter of 2020. It has reported losses ever since, however.
Shares of Blue Apron have dropped 54% this year, compared with losses of around 14% for the S&P 500 index SPX, -0.75%.