It was going so well for Blue Apron, until it wasn’t. The company, which set nationwide trends with its mail-order subscription meal kits, delivering ingredients and instructions to hundreds of thousands of Americans, had valued itself at $3.2 billion weeks before its initial public offering.
But a few days before Blue Apron shares entered the market on June 29, Amazon.com announced that it intended to buy Whole Foods. That $3.2 billion valuation shrank to $1.98 billion, and shares that were supposed to sell between $15 and $17 began trading at $10 and closed out the day rising less than one cent. Share prices eventually dipped as low as $5.12 — less than the price of one serving of a Blue Apron meal. Its co-founder stepped down, the company instituted a hiring freeze, and then it began laying people off. Its investors are suing the company, saying they were misled.
Read the full article, including statistics from Packaged Facts, here
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