6 Additionally, the company’s vertical integration, data analytics, and strong brand will help them compete against existing players and new entrants. 5 Of this $782 billion US grocery market, only 1.2% is online. With over 1 million paying customers ordering nearly $800 million in revenues in 2016, Blue Apron is a compelling first-mover and category leader that is well-positioned to scale rapidly and take market share in the $782 billion US grocery market and $540 billion US restaurant market. With headquarters located in New York and fulfillment centers in California, New Jersey, and Texas, Blue Apron delivers high-quality, pre-portioned ingredients along with original recipes and content to consumers. 4 They would like to make home cooking accessible to everyone and reinvent the grocery supply chain. E-commerce Eatingįounded in 2012, Blue Apron is a “cooking experience” company inspired by founders who wanted to cook at home but found grocery shopping and menu planning burdensome, time consuming, and expensive. Although Blue Apron’s valuation might not seem stretched from a multiple perspective, the company’s total market valuation relative to Whole Food’s purchase price of $13.7bn presents an interesting investment discussion given the current scale, competition, and future financial expectations. The company’s IPO pricing range of $10-11 per share gives the company a market capitalization value between $1.9-2.1 billion, representing a 1.5-1.6x 2017 forward sales multiple (similar to Grubhub, Hello Fresh, and eBay sales multiples). However, revenue growth has decelerated to 42% year-over-year in the most recent quarter, the company will likely remain unprofitable for many years to come, and there appears to be considerable existing and future competition. Blue Apron’s impressive customer and order growth, strong brand, and value-chain infrastructure enabled the company to grow revenues 133% from 2015 to 2016.

Executive Summaryīlue Apron is a compelling first-mover and category leader that is well-positioned to scale rapidly in the $782 billion US grocery market and $540 billion US restaurant market. It is an American meal delivery service that provides customers across the United States with weekly pre-portioned meals with recipes to subscribers. was founded in 2012 and is based in New York, NY. Company Description 3: Blue Apron Holdings Inc.

Blue apron price per meal