Blue Apron (NYSE:APRN) offers customers a simple cook at home meal delivery service in a growing market where consumers demand home delivery options.
Founded in 2012, the New York based company has shown impressive growth through aggressive marketing and strategic partnerships with its vendors and consumers. Recently the company has show interest in the public markets and is currently poised to sell 30,000,000 shares around $15 – $17 per share.
Investors are having mixed emotions after Amazon (NASDAQ:AMZN) announced a bid to purchase Whole Foods (NASDAQ:WFM) Friday. Investors are worried that Amazons take over of Whole Foods could send he majority of food delivery service market share into the hands of the retail giant. With Amazons growing delivery service and delivery speeds along with the the brick and mortar Whole Foods locations a simpler & faster service is the obvious goal. Having a wide and cost-efficient distribution network for fresh food.
Blue Apron’s market is also faced with strong competition from HelloFresh, Purple Carrot, Sun Basket, and Green Chef to name a few.
As Blue Apron argues that its business model is different than Amazon’s service “Prime Fresh”, investors may be hard to convince , we will see…
DELIVERED DAILY, COOK AT HOME MEALS, FROM AMAZON, Prime Fresh by Amazon
Blue Apron’s offering is being led by Goldman Sachs, Morgan Stanley, Citigroup and Barclays. The company plans to list on the New York Stock Exchange under the ticker symbol APRN.
As of 6/20/17 Blue Apron plans to sell 30,000,000 shares around $15-$17 each
Blue Apron, which was founded five years ago by Matt Salzberg, Ilia Papas and Matt Wadiak, believes its rapid growth will be sufficient to entice investors, despite having never turned a profit. Blue Apron has fulfillment centers in Richmond, California, Jersey City, New Jersey, and Arlington, Texas and has also worked to increased its automation.