APRN’s tumultuous time since going public
Since meal-kit delivery company Blue Apron (APRN) went public in June, it’s had a tumultuous time. Investors were spooked by how Amazon.com’s (AMZN) acquisition of Whole Foods (WFM) might affect the company. Shortly after that, the e-commerce giant filed for a trademark for meal-kit delivery, which Blue Apron stock tumbling. Whole Foods sells high-quality ingredients.
Blue Apron’s quarterly results and guidance in August didn’t exactly appeal to investors either. Notably, the company has been grappling with warehouse issues.
Blue Apron to cut 6% of workforce
On Wednesday, October 18, Blue Apron disclosed in a filing that it would be cutting 6% of its workforce. Back in June, the company said it had a workforce of over 5,000 employees, and it has been in a hiring freeze. It’s also had to shore in the marketing costs that it undertook to boost its customer base.
Now, Blue Apron is trying to cut costs in order to break even. APRN stock fell by 1.5% on Wednesday, October 18, and has fallen 47.0% from its IPO (initial public offering) price.
To its credit, however, Blue Apron has managed to ramp up its annual revenues to over $800 million in 2016 within a matter of three years. It sends its customers high-quality ingredients along with recipes, which relieves customers from the need of going grocery shopping and recipe planning.
Blue Apron is still the biggest meal-kit delivery company. Its competitors include Sun Basket Home Chef and Hello Fresh, and it has a current customer base of over 900.