Blue Apron's New Retail Line is Now Available on Jet.com's City Grocery Service

Blue Apron meal-kits from Jet.com |   Blue Apron

Blue Apron meal-kits from Jet.com | Blue Apron

Ever since the Blue Apron partnership with Walmart's Jet.com was announced late last year, the company’s meal-kits have been available on the retailer's online marketplace.

Jet.com became the first online retailer to sell the Blue Apron meal-kits, but Blue Apron tested a new product line dubbed "Knick Knacks" at Costco last May.

"We've completed our national retail pilot with Costco, which was our first opportunity to gain learnings and build competencies in expanding our product in the retail environment," said a spokeswoman for Blue Apron to "Grocery Dive." "Through our pilot with Costco we created our retail product which we were able to use as an entry point onto Jet's platform, and we also applied learnings from the Costco pilot to create our newest product, Knick Knacks."

The line has an extended shelf life and "bundles sauces, grains, dairy, spices and step-by-step recipes that customers then pair with their choice of a retailer's produce or protein."

However, the company paused the Costco test right before the holidays last year and has announced that this "national retail pilot" has come to an end.

Now, the meal-kit company is focusing more on online retail and the Knick Knacks product line is now available on Jet's City Grocery platform.

It's priced below most retail meal-kits at $7.99 for a two-person serving.

Although Blue Apron has made a play to increase its availability by partnering with other retailers, the company has struggled to gain subscribers and increase sales over the last year.

Blue Apron saw a 25 percent drop in subscribers last December compared to the year before.

Learn more about the company's new product line at "Grocery Dive" now.

Will Blue Apron ultimately make it in today's saturated market? Check out this past On Foodable: Industry Pulse episode about meal-kits as we explore whether or not this category will survive in the current state of the industry.

Walmart's Jet.com is Now Selling Blue Apron Meal-Kits

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Its official Jet.com, the e-commerce company owned by retail giant Walmart, will be the first retailer to sell Blue Apron meal-kits.

Now, customers in New York City, along with surrounding areas like Jersey City and Hoboken can receive a meal-kit with next-delivery through Jet’s City Grocery service.

Both companies announced the partnership on Monday and there will be two meal-kit recipes rotating specifically for Jet.com customers.

For the launch, four meal-kits are available for delivery including the Togarashi Popcorn Chicken with Sweet Chili Slaw & Jasmine Rice and the Dukkah-Spiced Beef & Couscous with Tahini-Dressed Broccoli recipe.

The meal-kits, which feed two, are priced between $16.99 to $22.99 and customers don't have to subscribe to Blue Apron to get a meal-kit either.

“Teaming up with Jet enables us to dynamically serve the lifestyle of metropolitan consumers, who will now be able to conveniently fill up their online shopping carts with high-quality Blue Apron meals that can be cooked in 30 minutes or less while shopping for other everyday needs, " said Brad Dickerson, CEO of Blue Apron in a press release. "This exciting launch is another step forward in our channel expansion strategy and reflects the strength of the capabilities we are developing to readily support a variety of opportunities to broaden our access to consumers.”

This appears to be the latest strategic move by Blue Apron as the on-demand delivery space gets more competitive.

As meal-kit delivery services struggle to grow their subscriptions, partnering with retailers is a clever way to gain more customers, especially those that aren't sure about the subscription-based model.

Blue Apron was the first meal-kit company to go public, but its debut on the New York Stock Exchange was lukewarm. The Whole Foods acquisition by Amazon was announced the same month the meal-kit company went public, which diminished some of Blue Apron's momentum.

But now, Blue Apron has a partnership with one of Amazon's biggest competitors.

Will meal-kits ultimately survive in today's saturated market? In July, Foodable reported that the QSR chain Chick-fil-A announced that it will also be offering meal-kits.

Watch this recent On Foodable: Industry Pulse to see what needs to happen for some of these companies to stay in business.