Walmart Jumps into Meal Kit Madness

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First a new name. Now a new menu. 

The largest retailer on the planet has begun offering meal kits to its 260 million customers.

And the move comes at a bad time for meals-in-a-box. 

Competition is tight as companies fight for a slice of a $2 billion pie, while market leaders like Blue Apron (whose stock price is down ~70% since IPO) struggle to make the economics of meal services work. 

But, Walmart's not dumb. 

Rather than dive in blind, it’s partnering with meal subscription brands including Takeout Kit and Home Chef to have them provide meals and fulfill orders. 

Brand partners get access to Walmart’s massive customer base, while Walmart earns a commission from meal kit sales and explores another vertical in the ever-important grocery business (56% of global sales). 

If this goes well for Walmart, meal kits become a question of when, not if.

Source