Legacy Companies Are Not Stupid

Comes now one of my least favorite companies: Blue Apron. I have been a critic of Blue Apron for an extended period of time. Today, we talk disruption and its push back implications.

Dear reader, the legacy companies who provide food — grocery stores — are not going to sit idly by and allow a disruptor to steal their business. They are going to fight back.
Do you know what is baked into those numbers? Amazon (Whole Foods) and Kroger — there are many others — which are legacy grocery stores, simply got into the “monkey see, monkey do” meal kit business and are offering the same products as Blue Apron on an immediate gratification, on-the-way-home, at a better price (no delivery cost baked into the meal) basis.
This is the lesson for today in FinTech (Zelle), in meal kit delivery (Amazon, Kroger, et al) — every disrupted business will fight back. Period.
Remember this when you decide to disrupt a big, hairy, well funded legacy business. They are going to fight back. Fiercely.
But, hey, what the Hell do I really know anyway? I’m just a Big Red Car and I had a meal kit delivery meal last night. It was yummy.

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