Hasta La Creative!

In its first earnings report as a public company, Blue Apron Holdings delivered what investors wanted: a significant decrease in spending on marketing. That move came at a price, however. While revenue beat estimates, the meal-kit delivery company lost customers, sending shares tumbling.

Blue Apron, which sells boxes packed with fresh ingredients and recipe cards to make dinner at home, needs to spend heavily on marketing to educate consumers on the concept and distinguish itself from the dozens of other offerings like Hello Fresh.

Amazon, which is buying Whole Foods Market, also delivers fresh food and is potentially entering the meal-kit market as well. Analysts had voiced concern about how much Blue Apron was spending to cover the airwaves and New York subways with advertising and whether its business model was sustainable.

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