Blue Apron needs its customers to eat more food

In order to prove itself to Wall Street, Blue Apron Holdings needs its customers to eat more.

Blue Apron APRN, +0.00%has been increasing its marketing efforts, in hopes of bringing in and holding on to more customers, but those costs have been weighing on the company’s margins, delaying potential profitability. These high expenses mean that Blue Apron does not necessarily need a big user base, but rather needs a concentrated group of loyal, high-paying customers.

The meal-kit company was valued at $2 billion in its last private funding round. The company priced at $10 a share and opened and closed at $10, giving it a public market capitalization of $1.9 billion.

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