interesting article on BA economics :
https://www.reuters.com/article/us-blueapron-ipo-idUSKBN19K22R
"" According to the company's IPO filing, 90 percent of the meal-kit delivery service's customers abandon the service within a year of their first purchase.
The company is only making about 5 percent of profit margin per customer even before considering other fixed costs like R&D, spending around $175 to acquire a customer that yields only $190 of gross profit on $600 of revenue, consumer research firm ValuePenguin said.
"Assuming this trend continues, Blue Apron will have to acquire more than 4 million new customers, which is about 3 percent of American households, every year, just to break even," said DJ Kang, senior vice president at ValuePenguin.
Kang also said Matthew Salzberg, the founder and chief executive of Blue Apron, has been selling his shares since 2014 even as his sale prices have been declining. """
clearly one tough business to be in.
APRN is now underwater.
