Here's the biggest reason people aren't using meal kits like Blue Apron (APRN)

pulse

July 20, 2017 8:20 PM

Potential and ex-customers of meal kit delivery companies like Blue Apron are citing the cost of the services as a major concern.

Food delivery businesses

Meal kit delivery companies like Blue Apron claim to help people save money on groceries, but potential and ex-customers are citing the cost of the services as a major concern.

According to a new poll by Morning Consult and Money Magazine, 49% of respondents who canceled a meal kit service cited the cost (starting at $8.99 per serving on Blue Apron) as the biggest reason for their cancellation. Additionally, cost was the biggest issue for 59% of respondents who have never tried a meal kit service.

The cost of the meal kit service was the number one factor for both potential and ex-customers by a wide margin. Not liking the recipes (13%) and unavailability in their area (15%) were the second biggest factors for those who canceled their service and those who have never tried a meal kit service.

When it comes to popularity, Blue Apron led the pack among meal kit companies with 43% of those who tried a meal kit service saying they used Blue Apron. That was followed by HelloFresh with 33% and Plated with 20%.

While this is seemingly good news for Blue Apron, the company is not only struggling with a disappointing initial public offering, but also customer-retention.

according to analysis

The company's IPO has not gone well either. Blue Apron shares are down 36% since their June 30 debut and news that Amazon is launching its own subscription meal-box kits certainly won't help the company going forward.

pulse