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Blue Apron is having another awful day and its shares are crashing

Blue Apron is having another awful day and its shares are crashing
From TechCrunch - July 17, 2017

Since going public last month, things have not gone particularly well for Blue Apron, thanks to the specter of Amazon and its $13.7 billion acquisition bid for Whole Foods. The bad news, again, continues to roll in as what may have been a competitor in theory now seems more and more like an existential threat.

Blue Aprons shares are down another 10 percent today, continuing a streak of mistrust and misfortune on the public markets since making its debut. That seems on the heels of evidence of its ambitions in the meal-kit market through the form of trademark filing earlier this month. Amazon is well known to bulldoze its way into new, sometimes perpendicular marketslike minting a $10 billion plus business in server farms and buying a video game live-streaming companyand now it looks like the company has set its eyes on meal-kit delivery.

Thats seems for good reason, too. In just the span of a few years, Blue Apron has exposed a business that generated nearly $800 million in revenue in 2016 and was able to eke out a small profit in the first quarter that year. While the company is now burning an enormous amount of cash to acquire and hold onto customers, Amazon has logistics down to a near-perfected science. It seems only logical that Amazon would be watching an area like this very closely, and by buying Whole Foods, may see an opportunity to pick off that now low-hanging fruit.

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