On Monday, Blue Apron Holdings Inc. (NYSE: APRN) dropped 12 percent after Amazon Inc. (NASDAQ: AMZN) filed a trademark application for prepared food kits. Shares declined to $6.51 which is a 35 percent drop since its initial public offering. Food kits would compose of meat, poultry, fish, seafood, fruits, and vegetables ready to be prepared and cooked for any meal.
Blue Apron already faces competition from similar startups as well as grocery delivery services currently offered by Amazon’s Prime service and Whole Foods’ partnership with Instacart Inc. On June 28, Blue Apron went public at $10 a share after Amazon announced a $13.7 billion offer for Whole Foods.
Valued at $2 billion in the private market, this meal kit delivery service has been experiencing steeper net losses each year since 2014. They offer pre-portioned ingredients and instructions to cook at home. At $59.94 a box, it includes recipes for 3 meals for 2 people which will directly compete with Amazon’s trademark application. CEO Matthew Salzberg admits that Blue Apron is tackling a huge market, but is determined to focus on the long term.