Amazon’s meal kit debut leaves Blue Apron struggling
According to Business Insider, Amazon launched its Amazon Fresh meal kit service on July 18.
According to Business Insider, Amazon launched its Amazon Fresh meal kit service on July 18. The kits, which contain enough ingredients to prepare meals for two to four people, cost between $19.99 and $38. While the kits are sold by Amazon, they are produced by other brands such as Tyson’s Tastemakers. The ecommerce giant, which filed a trademark application on July 6 for “prepared food kits,” is already selling its own brand of meal kits to certain Prime customers in select areas of the United States.
Unlike many meal kit services, Amazon Fresh meal kits do not require customers to subscribe to a service. Blue Apron, for example, requires customers to sign up for a two- or four-person subscription plan to receive ingredients to cook three meals a week.
Stock in Blue Apron plummeted by about 11% on July 17 as investors learned of Amazon’s plans to start directly competing with meal-delivery companies. Blue Apron’s June 29 public offering sold 30 million shares at $10 per share. However, in the less than three weeks since the public offering, the company’s stock has lost nearly 40% in value.
U.S. law firm Harwood Feffer is investigating potential claims against the board of directors of Blue Apron Holdings, including whether the board has breached its fiduciary duties to shareholders, grossly mismanaged the company, and/or committed abuses of control.