nav
Business Operations Business Models

How Does Blue Apron Make Money (Business and Revenue Model)

The Blue Apron business model

How Does Blue Apron Make Money?
Here’s what you should know:
  • What is Blue Apron, and how does Blue Apron work?
  • How does Blue Apron make money?
  • Subscription Revenue
  • Wine Delivery (Blue Apron Wine)
  • Selling Products (Blue Apron Market)
  • Blue Apron Subsidiaries, Acquisitions, and Exits
  • Blue Apron profit and revenue
  • What is the Blue Apron business and revenue model?
  • Blue Apron funding and market cap

How does Blue Apron make money? Here is a full, in depth, breakdown of their three (3) revenue streams and the different products and services they offer, as well as the Blue Apron business model, their profit and revenue, and how Blue Apron works.

What is Blue Apron, and how does Blue Apron work?

Blue Apron is a meal kit and wine service that delivers ingredients and recipes to customers weekly to prepare and cook the pre-ordered ingredients themselves.

Founded in 2012 by Matt Salzberg, Ilia Papas, and Matt Wadiak, Blue Apron began trading on the New York Stock Exchange (NYSE) on June 29, 2017, under the ticker symbol “APRN”.

Since that time, Blue Apron now has more than 366,000 active customers using its meal kit and wine delivery service.

How does Blue Apron work? To order from Blue Apron, customers can first download the mobile app on the Apple Store or Google Play; or by visiting their website.

Once there, they can choose from over 50 types of meals they want and how many servings (meals) per delivery. Once complete, the customer’s order will be delivered on the day of their choosing and will continue to deliver itself weekly until skipped, paused, or canceled.

Some of Blue Apron’s competitors include HelloFresh, Freshly, Home Chef, and other meal kit delivery services.

Blue Apron App in Apple App Store | Blue Apron Business Model | How Does Blue Apron Make Money? | How Does Blue Apron Work?
Source: Apple App Store | Blue Apron

How does Blue Apron make money?

According to Blue Apron, Blue Apron delivered more than 7.5 million orders in 2021 to over 336,000 active customers.

So how does Blue Apron make money off of all these orders and active customers?

Below is a breakdown of how much money Blue Apron makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 3 ways of how Blue Apron makes money (in 2022):

Blue Apron has a revenue model that makes money in three (3) ways; subscription revenue, Blue Apron Wine, and Blue Apron Market.

#1. Subscription Revenue

Blue Apron makes the majority of all its money through its subscription food delivery service.

As noted above, Blue Apron has more than 336,000 active customers that are on a recurring subscription plan. Which placed more than 7.5 million orders in 2021 alone.

The cost of Blue Apron depends on the plan. Each plan is customizable with more than 50 different recipes per week to choose from and serving sizes between 4 to 16 meals per delivery. The more you order, the cheaper each meal gets. Which you can see below.

Blue Apron Cost:

  • $7.99 to $11.99 per meal (depending on how many meals you order) plus a $9.99 flat fee for shipping
Blue Apron Cost | Blue Apron Business Model | How Does Blue Apron Make Money? | How Does Blue Apron Work?
Source: Blue Apron

Note: Blue Apron delivered more than 7.5 million orders in 2021.

#2. Wine Delivery (Blue Apron Wine)

Another subscription service Blue Apron makes money from is their monthly wine delivery service, Blue Apron Wine.

Blue Apron Wine is licensed and delivers across 31 states in the United States. At the time of the order, customers are able to select six (6) bottles of either all reds, all whites, or mix and match their favorites – all for a set monthly cost. Which you can see below.

How much does Blue Apron Wine cost?

  • $76.99 per month ($11 per bottle x 6 per month)

Note: Blue Apron Wine is a monthly subscription only. But customers can also purchase their wine bundles (3 and 6 packs) through their e-commerce store, Blue Apron Market, without a subscription. Which we talk about below.

#3. Selling Products (Blue Apron Market)

Blue Apron also makes money by selling its own products through its e-commerce store, Blue Apron Market.

Here, they sell culinary related products such as kitchen tools, pantry items, and more that range in price from $5.99 to $529.95.

Blue Apron Market | Blue Apron Business Model | How Does Blue Apron Make Money? | How Does Blue Apron Work?
Source: Blue Apron

Blue Apron Subsidiaries, Acquisitions, and Exits

To date, Blue Apron Holdings, Inc. has made a total of 1 acquisition.

Mergers and acquisitions business model
Source: Crunchbase | Blue Apron

Blue Apron profit and revenue

In 2021, Blue Apron reported $470.37 million in revenue.

Note: Because Blue Apron Holdings, Inc. is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Blue Apronb’s publicly released financial reports, including annual reports, through Blue Apron’s investor section on their website.

What is the Blue Apron business and revenue model?

Blue Apron makes money through a few revenue models that they combine within their company, they are:

  • Subscription business model
  • Upselling business model
  • Transaction based business model
  • B2B2C (partnerships) business model
  • Mergers & acquisitions (M&A) business model

Blue Apron funding and market cap

According to Blue Apron’s Crunchbase profile, Blue Apron has raised $352.5 million over 10 rounds and has a market cap of $106.54 million as of May 2022.