Gobble (YC W14) Raises $10.75M for Its 10-Minute Dinner Kits
techcrunch.com
techcrunch.com
Further, imo, the cost and packaging "waste" is nothing significant. When I shop for myself I still get packaging. Worse yet, a lot of food gets wasted anyway, i.e. because the grocery store doesn't sell me exactly as much food as I need, whereas Gobble does. I suspect this is actually more efficient, i.e. on all frontiers, especially given the waste I always generate from shopping for these ingredients.
I agree with shopping. But not so much with planning. Once you've been cooking for yourself for a couple months you can pretty much nail down a rotating meal plan that requires no substantial planning
On the packaging waste, I was delving through the Gobble website and found out they offer a free "Return & Re-Use Program" [1]
I don't think it is you and I appreciate the honest comment, but from the other comments it seems that everyone here has mastered the art of fitting in the planning, shopping, prep, cooking, and cleaning. Truly amazing! Or simply surprising that they can't hypothesize about the poor folk like myself who just can't quite get there in their life.
I know I'm over simplifying this - but if I was wanted to be in this space, I'd partner with grocery stores to build their tech, and charge the groceries incremental fees off each sale without taking on inventory / capital risk.
I'm just not sure about Gobble, blue apron, hello fresh et all... how are they differentiating themselves operationally? (Besides throwing money at having their own refrigerated distribution centers)
FedEx-ing food around seems like a gigantic waste of resources and seems at odds with "changing the world" for better. But that's just me.
*I'm a "busy millennial" with a good tech job who enjoys cooking - so I guess I'm in their target market?
I'm not sure who actually falls into the target demo of "wants to cook gourmet meals but doesn't actually know how to buy produce or cook a meal," (I want to see those user interviews and persona decks!) but they're in the Bay Area if they're anywhere at all.
I can't pretend to understand this sudden spate of high-valued Series As for companies that are just everyday small businesses with a lick of startup paint, but I suppose it's a case of too much money chasing too few opportunities -- or, at least, too much money unwilling to look outside the San Francisco to San Jose loop.
Paying subscribers? Or people on their email list?
- Price sensitive novices: likely realize fairly quickly that they can save quite a lot of money by shopping & chopping on their own.
- Price insensitive novices: likely find that the meals push the limits of their cooking skill, take longer and have more cleanup than they expect, and will either learn enough cooking skills to make the meal packages feel restrictive, or just go back to takeout.
- Price sensitive with cooking experience: likely realize how much cost is added for something that is not a big hassle if you have a little experience (i.e. basic knife skills and knowing where to find things quickly in the supermarket).
- Price insensitive with cooking experience: likely feel restricted by the ingredients and menus, and can get halfway there with grocery delivery.
A former roommate of mine (price insensitive novice) had a Blue Apron subscription for some time and I was always shocked at how incredibly much packaging there was, from individual foam wrappers around vegetables and tiny baggies with a glove of garlic to huge ice packs and layers of cardboard. It seemed like such a waste to me.
A few other positives:
- You get the experience of making the dinner (chopping, cooking, mixing, etc.). It's a good entry point for novices.
- Many of the ingredients are somewhat exotic, so you wouldn't usually buy them in the grocery store. Or if you did you end up with a lot left over that you won't use again.
- $59 for six meals actually seems like a bargain to me. Maybe we were doing it wrong but when we used to go to the store for all our meals, we spent a lot more and ended up wasting a lot of it.
The downside is that you don't save that much time (other than the shopping trip). So I could see how Gobble is great for more time-constrained people.
In the end, I think all of these services are trying to own the space, starting with their own niches. Once they get enough traction they can land and expand to take over the other services' niches. This comes at a cost to them (poor unit economics initially), but we the consumers benefit...for now at least.
[0] https://support.blueapron.com/hc/en-us/articles/202510818-Ho...
I'm a bachelor so it wasn't like I was doing some fun social thing when cooking. I'd listen to podcasts, which was nice, but I'd rather do that at the gym or getting some sort of exercise/relaxation done. Also, I'm absolutely fine with eating boring meals throughout the week. I'm practically on the fence about Soylent because I'd rather spend less time planning, shopping, cooking, etc.
The great thing that Blue Apron did was build up my kitchen confidence.
Step 1: Throw some rice in a rice cooker, add water, press button.
Step 2: Cut up 2 sausages, throw it in the microwave for 2 minutes
Step 3: Put one or two cups of frozen vegetables in a bowl, add water, and steam in the microwave for 4mins.
Step 4: Throw the sausages and the vegetables on the rice, add Soy Sauce to taste.
Optional: Feel free to make some eggs on a pan. Should only take 2-3mins. You can add that into the mix of Rice/Sausage/Veggies.
Aaaaand that's dinner!
I'm gonna try this out.
People just aren't willing to pay high margins for food that gets delivered. There is constant pressure to offer more food at lower prices.
Their most likely exit strategy is to build a brand strong enough that they can get a line of frozen prepared meals picked up by major grocery retailers or sign a licensing agreement to do something similar.
My biggest issue with these services is that for a regular home-cooked meal, that is quite a premium for something where the portion size is quite often way too small or the ingredient quality isn't justified by the price.
I know I'm looking for something that may not be able to exist because of the razor-thin margins, but if someone came out with a service at the <$10 price point with decent ingredients and portions, and healthy (read: low sodium, low sugar, low processed-crap) options, I'd likely switch a significant percentage of my weekly meals to them.
As it stands now, it is just hard to justify at that price. But perhaps I'm not the target market.
Cooking is not hard like reading is not hard: if you grew up doing it, you might not remember having learned it at all. The historical expectation that at least half the population grew up cooking has fallen apart, particularly among some social classes. I would not suggest contempt of business models which only succeed by helping more people learn to cook.
(Cards on table: can cook, do so rarely, would be very open to doing more and very willing to trade money to decrease time investment required.)
As to the economics of it: doesn't strike me as having unit economics compatible with investor expectations but oh well capitalism happens -- if it does they make a bundle, if not they're sophisticated rich people who can afford to lose money while buying food for less-rich people at a loss. "Even the poorest Americans will have cooked food prepared by servants" was once science fiction, too. That business worked out pretty decently, modulo latter-day concerns that "Well maybe poor Americans shouldn't have their food cooked by servants."
Why wouldn't I do that?
They can offer more verity in their menus over time and some people actually enjoy cooking even if the majority of the work was already been done.
Their kits are also intended to be able to stored up to 5 days in refrigeration and up to 2 weeks if frozen which means you can use them on your own schedule which you can't do that easily with take-away or order-in.
Another important fact is that when you are cooking you can adjust the recipe yourself add or remove ingredients, over cook or under cook the veggies depending on how you like them, add or replace seasoning etc.
Oddly enough I don't understand why these types of kits aren't available in grocery stores I can go down to Marks and Spencer or Waitrose and get pre-cut veggies, meats, pre-cooked pasta/noodles and rice or whole premade meals including ready to cook steaks, fish, poultry, pasta dishes, pies, soups even deserts...
My only gripe is the amount of waste it generates. I definitely have a feeling of guilt with how much of the packaging gets thrown into the garbage. Gobble really needs to address this.
On the downside when I see such a business racking up silly valuations like this I see lots of bubbles floating around.