Blue Apron Plummets After Amazon Files for Meal-Kit Trademark
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The traditional food distribution system is massively wasteful but all of that waste is hidden so it is easier to ignore.
Like, can we just talk, sometimes?
And there's lots of waste throughout in those cases even when it's not visible.
It's hard to quantify any of that but, plastic bags or not, I suspect Blue Apron is relatively environmentally friendly.
https://www.wired.com/2016/07/us-throws-away-much-half-food-...
That's really hard to estimate; did Blue Apron (etc) users previously buy a lot of groceries, cook some of them, then throw the rest of the food away as it rotted? Or did they simply cook less, and rely more on delivery, restaurants, or putting more work into planning their meals?
https://sealedair.com/product-care/recycling-bubble-wrap-pla...
You can also use Amazon boxes to donate used clothes and household items:
Took a look at sealedair's 'program'. I could be wrong, but it looks like it's just links to other organizations' directories of local recycling programs; most of which are retail stores. Here's why I don't trust retail stores (Best Buy, Home Depot, Lowes, Safeway, etc...): while they do a great job of marketing their 'recycling programs' most of what we put into their recycle bins just end up in their normal dumpsters which defeats the purpose.
> The deflated cells can be sent to any of a number of Sealed Air locations where they will be recycled back into LDPE
If you're in the US, send them here:
Ameri-Pak, Inc.
Sealed Air Recycle Center
477 South Woods Dr.
Fountain Inn, South Carolina 29644Nice one! I hadn't thought of this, but I'll start doing it now.
If "we" want to stop trashing the world, first we need to show we are willing to pay for that.
This is the typical supply-side dodge. Consumers have little to no power here. I can't dictate to Amazon or major shipping companies (I do buy AMZN's frustration-free when I can).
What option is there? Do you propose I compete with the packaging with my own offering?
Consumers blame suppliers, suppliers blame consumers. No one has to do anything. Long live the status quo! :)
That's the dodge right there. Easy as a supplier to simply say "we provide what the consumer wants" to justify all business decisions. Courage, that is.
This is normally where the government or watchdog organizations get involved - those have been gutted or defanged in the past few decades... by business interest group lobbying.
The sole exception I found was amazingly, Safeway's grocery delivery service where the person showed up with a box, walked in, unloaded in my kitchen then took the box with him. Of course, you need to be present for that, but something equivalent for non-perishable delivery would be a huge sanity saver for me.
Plus now recycling minded folks are likely to go by WF more frequently.
https://en.wikipedia.org/wiki/Milkman
http://pocketcultures.com/2012/01/25/argentinean-customs-hav...
All recyclable, what's the problem here?
> Please, invent some form of reusable container that can be easily stored and delivered back so we can stop trashing the Earth.
So is the real issue that you're concerned with reducing waste (recyclable at that!) that's visible to you, consequences be damned? Because I'm not so sure shipping back an empty food container is better for the earth than recycling it.
The smaller bags are problematic, though some of them are also reusable (if they have a zipper or equivalent mechanism for resealing). The little bottles/jars are also reusable, though I've yet to actually find a use for them.
I find they're handy for travel, picnics, etc. although admittedly if I used Blue Apron repeatedly I'd probably end up drowning in them.
With the new awareness that atmospheric CO2 is the main environmental problem facing the world (rather than giant landfills, which are un-aesthetic but not really a big deal), I've wondered whether this logic makes sense anymore.
Isn't a giant landfill full of carbon-based food, carbon-based plastic, and carbon-based paper a good form of carbon sequestration? Obviously it just buys us time, because it'll decompose in a few centuries, but hopefully by the time that happens we'll have better methods of removing CO2 from the atmosphere.
It seems to me that recycling would just drop the price of plastic and encourage use elsewhere, but burying it underground would remove the byproduct.
The best thing you can do is to not need so much energy in the first place. If you must travel use high efficiency transport. (shipping counts as travel). Make sure your housing is well insulated.
The next best thing store carbon: start forest and grass fires. A regular forest/grass fire will burn cold enough that a lot of carbon is converted to charcoal - permanently sequestrated carbon. Note that regular is key here. If you don't light a new fire every year fuel builds up until you get a hot fire.
But there's nothing really that needs invented here.
Blue Apron and Hello Fresh need to figure out how to make their services more sticky. At some point we've collected enough meals that we like where we can just go to the local grocery store to pick up the ingredients and make it ourselves.
Both of these services sell convenience, but it is hard to keep selling that to existing users who grow weary of the amount of waste and the simplicity of just grabbing everything they need to make these meals on their own. Amazon's meal-kit could help solve this if they just add the ingredients to shopper's grocery list automatically and it's ready to be picked up at their next trip. Delivery is a non-starter in my opinion. It didn't work for grocery.com back in the early dotcom days, and it's not working now.
heh. welcome to a chef's world.
"The problem Groupon faced was that their initial success validated a model that anyone could copy, and everyone who copied it increased both Groupon’s cost of customer acquisition and its churn rate."
https://medium.com/@byrnehobart/the-slow-motion-trainwreck-f...
Blue Apron spends a fortune acquiring new customers, possibly up to $460 per sign up as of recently [1]. I bet the percentage of Blue Apron subscribers that are also Prime members is amazingly high. Amazon doesn't have to pay a dollar to advertise to these people, let alone $460.
[1] https://www.recode.net/2017/6/1/15727182/blue-apron-ipo-s1-a...
Their advantage would of course be their world class distribution/fulfillment tech, but also the fact that the costs of the food parts are mostly sunk already into the Whole Foods biz.
They only need to figure out meals that last 7 days (chilled) with natural ingredients only, but since freshly(acquired by nestle) did it, it's possible.
Or maybe there's some patent here, and it's really hard to achieve otherwise, and that's why nestle bought them.
Whole Foods ingredients + Amazon delivery = game over for most of these meal kit companies.
They would be able to provide users added levels of customization and probably same day or next day delivery whereas with most meal kit companies, you have to lock in your menu for the week the prior week, which is inconvenient if plans change.
Ultimately, I'm excited about this move as I shop at whole foods regularly and look forward to the ease of delivery that Amazon provides.
I wonder where Amazon will target next; they've already targeted grocery and meal kit delivery and revealed plans to compete with Zillow and Redfin this week in real estate. Which industry is next?
I have 2 small kids so meal planning is hard to do consistently. I can whip up a chicken breast and veggie, but what I get from Good Eggs is seasonal recipes and fresh produce sourced directly from local farmers PLUS prepared elements including marinated meat and sauces.
So when I cook a meal kit I'm getting a much better meal (more like a dinner party meal) for about the same effort as a barebones meal I would make otherwise.
I have used Instacart and bought prepared stuff from Whole Foods, and there just isn't a comparison. In SF, I often get or see old/bruised produce in Whole Foods which used to be consistently good.
No sane investor would be pumping money into them until they know what and how Amazon would be looking at this market.
I think over next few years we would see a total implosion of meal-kit industry with the exception being whoever operates Whole Foods on a national scale. On a regional level grocery stores and small grocery chains would offer the local meal kit service as for them the costs of expanding into that market locally is tiny.
I don't think so. Meal kits are a niche business fighting against mass market competitors already so nothing changes with the Amazon entry.
If anything having an established player like amazon advertising meal kits increases market awareness and gets people interested.
No one is going to have a monopoly of the food business, ever. It just doesn't work that way.
- Grocery delivery seems to generally be gaining a bit of momentum in the US, at least close in to major urban centers, as a lot of people get more and more comfortable with buying things online.
- Grocery chains are beginning to take notice of meal kits. Most of them already sell a fair bit of prepped but uncooked food. Creating packaged bundles with a recipe card is a pretty small incremental step.
Amazon now has regional distribution centers in every major city. They have a network of vendors, they have a fleet of delivery trucks and contract drivers. Blue Apron is F'ed.
Instead what we have now is Amazon not just eating Whole Foods but taking away the customers from the meal-kit industry by taking them back into Whole Foods. So it is Amazon's global logistics + Amazon ops + Whole Foods supply chain in food business + Wholefoods profitability v. upstart with at best a couple of warehouses, some engineers, and a dozens minimum wage paid workers assembling kits. The pie available for the upstarts just became much smaller.
For Whole Foods entering a national meal-kit business is a no brainer. It has the needed footprint that dwarfs their meal-kit competitors, it has the logistics of the supply chain and places to distribute the deliveries out of ( Whole Foods stores ) and it has a brand familiar with and trusted by the same people who are targets of the meal-kit offerings. Blue Apron simply won't be able to complete with 2-3 hour delivery from Whole Foods. Not to mention every single thing that one needs to create the most complicated Blue Apron recipe is available at pretty much every Whole Foods immediately. Oh, and Whole Foods is profitable already. Oh, and they can make even more money upcharging.
Who can compete with Whole Foods? Your neighborhood grocery store. Why? Detailed local knowledge means knowing exactly who buys what, who lives where and when they are home. Delivery windows of 15 minutes. Prices lower than the prices at Whole Foods.
[Late addition below:]
The other advantage that local grocery stores/small chains would have over the nation-wide chain is that being Ramen Profitable after all costs is a great result for a stable business not looking at expansion.
https://en.wikipedia.org/wiki/List_of_ConAgra_brands
https://en.wikipedia.org/wiki/Yum!_Brands
https://en.wikipedia.org/wiki/Cargill
https://en.wikipedia.org/wiki/JBS_S.A.
We aren't there yet, but the trend line is pretty clear.
Cargill might be big at 100B+ revenue (global) per year but US food expenditures are 1.5T+ per year, so even a company as huge as Cargill is capturing < 10% of the US market. Hardly a monopoly.
https://www.ers.usda.gov/data-products/food-expenditures.asp...
It'll be interesting to see who else steps into this market. Hopefully there will be a focus on local pick ups to eliminate even more of the footprint.
Ideally we'd see something similar to the CSA shares where you get a rubbermaid bin once per week with everything packed in something similar to Mason jars (with an initial deposit to ensure people are playing along.)
This is a fantastic opportunity for local supermarkets and grocery stores to dedicate a section to 'What's for dinner?' -- where all of the ingredients are grouped together with a small recipe card and a link to a video, or something along those lines.
People who really wish to trade money for time would just eat at restaurants.
Amazon has a logistics network capable of doing same-day delivery at lower-than-Blue-Apron's costs. Amazon will ship locally rather than cross-country using dry ice. Purchasing ingredients in Whole Foods' massive quantities will lower costs further. Coupling that with their huge warchest, Amazon can crush Blue Apron by offering a competing service at far below cost for years.
If Amazon plays this as aggressively as they did eCommerce, I don't see any way for Blue Apron to win on their own.
As has been pointed out, Blue Apron fails to mark its territory in any meaningful way and only had power from first movers advantage. That power is gone now.
My understanding is that this is a strong suggestion that their niche is being invaded by a formidable player.
Then however bad, it kind of is legitimate practice to put pressure on them. I need to read more carefully next time.
Both brand images are associated with cheap crap. I don't want to eat cheap crap.
A good filter to start with is only products fulfilled by Amazon, and a step further, only Prime products. Granted, the due diligence still sucks, but I spend several thousands of dollars a year on Amazon products, and aside from the products that I know are cheap (like $4 phone cases) I've never had any issues.
Wal-Mart also happens to be among the few grocers in my area that consistently stocks plantains (which are among my favorite foods, especially when fried and served with refried beans and sour cream).
But branding goes a long way, and they'll undoubtedly position this differently than the above.