Blue Apron Plummets After Amazon Files for Meal-Kit Trademark


Blue Apron Plummets After Amazon Files for Meal-Kit Trademark

Blue Apron Braces for Amazon Intrusion; Shares Indicated 3.7% lower in Pre-Market Trading

Blue Apron Braces for Amazon Intrusion; Shares Indicated 3.7% lower in Pre-Market Trading

Meanwhile, Amazon's proposed acquisition of Blue Apron helped triple the value of IMPINJ Inc (NASDAQ: PI), a provider of readers and gateways that enable wireless connectivity and software that delivers Item Intelligence from endpoint reads. This service will provide customers "prepared food kits. ready for cooking and assembly as a meal", according to Amazon's trademark application, which was filed on July 6. "You be the chef".

Amazon has registered a trademark in the USA for a service described as: "We do the prep".

The growing meal kit business has attracted some major players, including Martha Stewart, whose Martha Stewart Living Omnimedia acquired meal kit company, Marley Spoon, a year ago and renamed it Martha & Marley Spoon.

Blue Apron holds the title as the largest meal-kit provider in the USA, followed by German-based HelloFresh.

In early Monday trades, Blue Apron shares plunged as low as $6.51, off more than 11 percent from Friday's close and almost 33 percent below their June 29 IPO price of $10 on the New York Stock Exchange.

Blue Apron's current price, however, looks downright bullish compared with the $2-a-share price target it received from Northcoast Research, the first Wall Street firm to weigh in on the company. Amazon's trademark application indicates that it may more directly compete with Blue Apron in the future. As such, Blue Apron trimmed its IPO range to $10 to $11 a share, down from $15 to $17.

Up until now, though, Amazon's testing of meal kits has carried no official label, slogan nor branding.