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.
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.