How Blue Apron Uses Discounts to Attract New Customers in a Crowded Market

Blue Apron's Strategy: Discounts for New Customers

Blue Apron, the meal kit delivery service based in New York, continues to offer promotional deals to attract new subscribers. The company went public in 2017 when meal kit services were booming, and it still relies heavily on discounts as its main way to bring in customers. Blue Apron's website shows special offers designed for first-time users—a common tactic in subscription businesses where companies prioritize getting customers to sign up first, even if it means losing money initially.

Pricing: Premium, Not Budget

Blue Apron charges between $7 and $15 per serving, with most meals costing $10 to $13, according to industry analysis. This positions Blue Apron in the premium (higher-price) tier of the meal kit market, competing with companies like HelloFresh.

This pricing reflects the real costs of running a meal kit business: paying for refrigerated delivery trucks, sourcing quality ingredients, and acquiring customers all eat into profits. By charging $10+ per serving, Blue Apron targets customers with more money to spend rather than trying to be the cheapest option.

The Changing Meal Kit Industry

The meal kit sector has changed dramatically since its peak around 2015-2016. Back then, investors were excited about meal kits and poured money into dozens of startups. Today, many of those companies have disappeared or merged because customer acquisition costs were too high and people kept canceling their subscriptions.

Blue Apron's discount approach reflects a common pattern in subscription businesses: companies spend money upfront to get customers, betting they'll stay long enough to become profitable. However, this strategy only works if the company can keep customers around and improve the profit per customer over time.

Managing Growth with Discounts

When Blue Apron runs promotions, it creates waves of new customers, which puts pressure on the company's systems. The company needs to:

• Predict demand accurately — using computer algorithms to guess how many customers will sign up and what meals they'll choose
• Manage fresh ingredients — avoid spoiling food while meeting sudden spikes in orders
• Plan delivery routes — get meals to customers efficiently
• Handle payments and customer service — keep systems running smoothly during promotional surges

These systems are interconnected and complex, especially since meal kits involve perishable products that expire quickly.

Competition Is Growing

Meal kit services no longer compete just with each other. They now compete with:

• Amazon Fresh and grocery store delivery apps
• Curbside pickup at supermarkets
• Restaurant delivery services like DoorDash
• Meal planning apps

This broader competition means Blue Apron needs promotions to stand out and convince customers to try its service instead of using these other options.

Is This Strategy Sustainable?

Blue Apron's focus on promotional discounts is a double-edged sword. On the positive side, discounts can attract many new customers quickly and help the company use its supply chain more efficiently. On the negative side, discounts can attract bargain-hunters who cancel as soon as they have to pay full price—and they cost money that cuts into profits.

The key question is whether Blue Apron can turn these discounted customers into loyal, paying subscribers who stick around. If the company can do that, the promotional strategy works. If not, it's just burning through cash.

Looking Ahead

Meal kit services will likely succeed or fail based on whether they can improve their delivery technology, adapt to how people actually cook, and maintain an advantage over grocery stores and restaurants. Blue Apron's current promotional strategy shows the company believes it can make the math work through better operations and customer loyalty—but time will tell if that bet pays off.