A stronger performance was needed to support the $3 billion valuation that the company was targeting in an IPO at the time.
Despite steady customer growth, Blue Apron doesn't seem to be inspiring its customers to spend more over time.
Initial public offerings are a big deal for a company for a few reasons. We don't know what it wants to raise in the IPO. Already, it competes against other services such as HelloFresh, Home Chef, Plated and PeachDish. Spoonrocket shut down previous year.
Amazon.com (AMZN) and Google-owner Alphabet (GOOGL) also provide food delivery services. Maple, a NY startup that dreamed of delivering a better office lunch, shut down last month. After users have signed up on the company Web site, they can select one of two options: a couples' plan, which has three meals for two people (totaling six meals), or a slightly more expensive family plan, which can feed between four and five people, totaling between 12 and 15 meals. However, the losses too have been equally prominent: Blue Apron lost almost as much money in the first quarter of 2017 (USD 52 million, on quarterly revenue of United States dollars 244 million) as it did in all of 2016 (when it lost USD 55 million on USD 795 million in revenue), reportsCNBC. Should Jeff Bezos ever get truly serious about the "Recipe-in-a-box" business, he can apportion food from his growing grocery concern, offer it as a Prime membership perk and burn Blue Apron to the ground in less than a fiscal quarter. While it boasted $795.4 million in 2016 sales, its net loss for the same year grew 16 percent from 2015, capping at $54.8 million-mainly due to increased ingredient costs and marketing expenditures. The company swung to an operating loss of $51.7 million in the first quarter from an operating profit of $2.9 million.
Blue Apron plans to list on the NYSE under the ticker APRN.
The underwriters for the offering are Goldman Sachs, Morgan Stanley, Citigroup, Barclays, RBC Capital Markets, SunTrust Robinson Humphrey, Stifel, Canaccord Genuity, Needham, Oppenheimer, Raymond James and William Blair.
The co-founders of Blue Apron are Chief Executive Matthew Salzberg, 33, who holds an MBA degree from Harvard Business School.