Share to twitterMeal kit company Blue Apron's stock has slumped 95% since its 2017 IPO, giving some pause about theVanessa Camozzi, a 29-year-old recruiting manager who lives in San Jose, California, is quick to admit she’s a fan of the subscription box industry. Since 2011, she’s tried about 10 different subscription box services from Blue Apron and HelloFresh meal kits to“I hate going to stores,” she said. “It takes a lot of thinking and decision-making out for me....
McKinsey estimated that the market size for subscription e-commerce box services is as much as $15 billion, and the largest online subscription businesses generated $7.5 billion in combined sales in 2018, up 30% from 2017. “It’s still very early days” for the subscription box concept, Fenyo said. “New companies and new categories continue to emerge.”
It’s a space “certainly not without its challenges,” such as rising costs to attract new customers, Chambers said, adding the industry counts about 3,500 subscription boxes. But “we continue to see engagement and subscriber growth.” After a decline to at least a four-year low of $318 million last year, U.S. venture capital funding for subscription boxes as of Dec. 12 this year rose by a third to $426 million, according to PitchBook.
“It takes 30 minutes to an hour” to cook, she said. Sometimes I want to “eat out. It just feels very wasteful or sometimes the menu is not what I want.”
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