You go that way, we'll go this way

Food delivery startups are dropping like flies. But against all odds, one of them filed for IPO yesterday.


June 2, 2017

Food delivery startups are dropping like flies. Sprig, Maple, SpoonRocket… The list goes on of businesses that couldn’t figure out the right margins to, you know, actually make money each time someone bought their food.

Now compare that to another food delivery startup, Blue Apron, who filed for IPO yesterday following strong year-over-year revenue growth from $341m in 2015 to $800m in 2016.

That’s a lot of quinoa…
On the unit economics side, Blue Apron said they delivered 4.3m orders during the first 3 months of 2017 with an average revenue of $236 per customer. Not bad for an industry known for hemorrhaging cash on every colorfully-bagged meal.

No word yet on the offering size but, according to the filing, the company claims that online sales, projected to compound annually by 8.5% for the next 3 years, account for only 1.2% of the addressable $781B US grocery market.

Put another way with less mumbo jumbo, Blue Apron seems to be steamrolling their way to the next big, successful consumer IPO.

Daily briefings, straight to your inbox

Business and tech news in 5 minutes or less

Join over 1 million people who read The Hustle

Psst

How'd Bezos build a billion dollar empire?

In 1994, Jeff Bezos discovered a shocking stat: Internet usage grew 2,300% per year.

Data shows where markets are headed.

And that’s why we built Trends — to show you up-and-coming market opportunities about to explode. Interested?

Join us, it's free.

Look, you came to this site because you saw something cool. But here’s the deal. This site is actually a daily email that covers the important news in business, tech, and culture.

So, if you like what you’re reading, give the email a try.