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Blue Apron IPO - the problem may Not be Amazon.com Inc, but closer to home

Proactive Investors Tuesday, 20 June 2017 ()
Okay the word of the day Monday was ‘really’ and summed up the reaction of analysts and investors to the planned IPO of Blue Apron Holdings Inc, the meal ingredients company. A number of seasoned market watchers were a little incredulous at the move, coming as it did less than three days after Amazon.com Inc’s (NASDAQ:AMZN) US$13.7bn move for Whole Foods Markets (NADAQ:WFM) – and the coverage has largely mirrored that scepticism. READ: Tech Crunch gives its insight on the Blue Apron IPO It is assumed that Amazon, with its newly-acquired footprint in the grocery space, will stomp on newbies such as Blue Apron. However, the company’s advisers don’t seem to be particularly perturbed. Either this or they’ve decided simply to go hard rather than go home, as it were. The IPO could give the business a US$3.2bn valuation, around US$1.2bn higher than the firm was worth in private ownership. It will issue shares at US$15-$17 each, raising around US$590mln in the process. But while most of Wall Street was looking at the looming juggernaut that is Amazon, one keen-eyed amateur analyst seems to have spotted a more pressing problem for the business. His/her Twitter handle is Modest Proposal points to an alarming increase in churn despite a punchy cost per gross addition (we are not reporting this as fact; it is merely an observation).   Blue Apron updated S-1. Using disclosed average CPGA of $94, monthly churn has risen from 7% to 18%, implying 5.5 mo avg customer life. pic.twitter.com/m25VCSzhVd — modest proposal (@modestproposal1) June 19, 2017
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News video: Food Delivery Competition Heats Up With Blue Apron IPO

Food Delivery Competition Heats Up With Blue Apron IPO 02:25

Jun.19 -- Days after e-commerce giant Amazon.com Inc. rattled the food industry with its $13.7 billion deal to acquire Whole Foods Market Inc., meal-kit delivery company Blue Apron Holdings Inc. is vying for some of the spotlight. Bloomberg's Alex Barinka and Cory Johnson have more on "Bloomberg...

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Pamela Castellana @blueapron Vanessa in customer service is a gem. I have never had a problem she couldn't fix. I LOVE Blue Apron. 18 months a happy foodie 20 hours ago


francine hardaway Really? Blue Apron for dogs? Or is it Grubhub for dogs? Either way, it doesn't have to exist and solves a problem... https://t.co/97WIYM1Sjq 3 days ago


Michael Knemeyer RT @SupplyChainLisa: Last mile problem: Here’s how much you’re actually paying for 'free shipping' on Blue Apron https://t.co/qznqEnslpH 4 days ago


Lisa Ellram Last mile problem: Here’s how much you’re actually paying for 'free shipping' on Blue Apron https://t.co/qznqEnslpH 4 days ago


Matthew *prep time=15 mins* Actual prep time=55 mins Good one, blue apron. Wouldn't be a problem if the flavors actually developed in the dish 😒 5 days ago


Ephraim Alajaji @tweeinstein My wife and I get blue apron and have for two years and we've never had a problem with it. We absolutely love it. 1 week ago

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