uploads///Blue Apron Shares Have Declined by  Since the IPO

Why Blue Apron Replaced Matt Salzberg


Dec. 5 2017, Updated 7:33 a.m. ET

Blue Apron has had a tough time since going public

Since going public on June 29, 2017, meal-kit delivery company Blue Apron (APRN) has had a rough time. A few days before it went public, Amazon (AMZN) acquired Whole Foods, which sells high-quality groceries. Blue Apron delivers high-quality ingredients with its recipes to its customers. Amazon’s acquisition of Whole Food sent a chill down Blue Apron investors’ spines. Investors have also been worried about the company’s customer retention woes.

Blue Apron’s new expensive warehouse worsened investor sentiment. That’s because Blue Apron said it will be able to finance the new warehouse by cutting marketing costs. Marketing has been critical to the company and has helped retain customers.

Article continues below advertisement

Matt Salzberg is stepping aside as CEO

Matt Salzberg, the founder of the beleaguered company, is stepping down as CEO (chief executive officer). The board is replacing Salzberg with Brad Dickerson, the current CFO (chief financial officer). Salzberg will remain the chair of the board of directors.

The company generated revenues of $210.6 million in the most recent quarter. While this is impressive, given that the company is just five years old, growth is slowing down while costs are increasing.

On Thursday, November 30, 2017, APRN stock closed at $2.99, which is 70% lower than its IPO (initial public offering) price of $10 per share.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.