Failure pattern · United States · 2012–2023
Blue Apron: high acquisition costs and customers who left
Blue Apron popularised meal kits but spent heavily to acquire customers who didn't stay. Its 2017 IPO was cut in price and it was sold in 2023 for about $103 million.
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
by the numbers
- IPO price (2017)
- $10, cut from a higher range
- IPO valuation
- about $1.9 billion
- Sale price (2023)
- about $103 million
What happened
Blue Apron, founded in 2012, delivered boxes of pre-measured ingredients and recipes. It grew fast with heavy advertising and generous first-box discounts.
Many customers tried a few boxes and cancelled, so the money spent acquiring them wasn't recovered. The week of its June 2017 IPO, Amazon announced it was buying Whole Foods, raising fears of competition. Blue Apron cut its IPO price to $10, valuing it at about $1.9 billion, and its shares fell steadily afterwards.
Blue Apron struggled to find profitable growth and was sold in 2023 to Wonder Group for about $103 million.
Timeline
- 2012
Founded.
- 2017
IPO; Amazon buys Whole Foods.
- 2023
Sold to Wonder Group.
what went wrong
- Customer acquisition cost exceeded customer lifetime value.
- Low switching costs and many copycats.
- Product was a hassle for busy customers over time.
the lesson
Subscription growth only pays if customers stay long enough to recover what you spent to win them.
Apply it to your business
- 1Measure retention by cohort, not just sign-ups.
- 2Compare CAC to lifetime value before scaling ads.
- 3Find out why customers cancel.
Laws at work in this story
Figures are rounded and drawn from public reports, company filings and widely cited coverage at the time. Check the company's latest filings before relying on any number.