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06.19.17 | 11:50 am

Blue Apron plans to cook up $586.5M at IPO

Blue Apron could soon be worth $3 billion or more. The meal kit delivery company has amended its intent to go public to include a price-per-share range of $15-$17. The company plans to raise $586.5 million at its initial public offering—money it needs to keep its meal kit business going. 

Blue Apron's desire to go public comes as Amazon has just announced an acquisition of Whole Foods Market. The purchase has unsettled the grocery industry and has traditional supermarkets scrambling for ways to compete on delivery. But this partnership may not be a concern for Blue Apron. The company has made a name for itself bringing cooking kits into homes without a trip to the grocery store. Blue Apron's biggest hurdle to profitability has to do with how much it spends to acquire customers. (Hint: It's a lot and it keeps getting bigger.) Rather than worrying about competing with offerings from Amazon and Whole Foods, Blue Apron should be angling to get its goods onto Amazon's overall grocery platform. 

[Photo: Blue Apron]

06.01.17 | 5:32 pm

Blue Apron files to go public 

Meal kit Blue Apron has filed to go public— it is the first of the meal kit startups to do so. The company entertained a public offering last year, but reportedly held off to get costs under control. But its S-1 filing reveals spending is only growing.

Acquiring customers appears to be the biggest expense; the company spends approximately $94 per customer. Blue Apron's metrics show that it pays to acquire that customer. They'll spend $410 in the first six months and $939 by the 36-month mark. But what about all those customers that don't take the bait? Read more here.

[Photo: courtesy of Blue Apron]

10.04.16 | 9:02 am

Blue Apron says it’s resolved its workplace safety issues

Following a damning BuzzFeed article that reported unsafe and sometimes violent working conditions at Blue Apron's warehouse facility in Richmond, California, the company said in a statement to Fast Company that it "occasionally relied on temporary staffing agencies that unfortunately did not meet our performance standards and whose workers did not always abide by our policies and procedure," but that it quickly ended relationships with those agencies. "All final findings in our OSHA record are classified as 'other' or 'general' (the least serious type of violation)," the statement said, "and we have always cooperated fully and promptly with OSHA to improve our workplace in every way they identified."

The BuzzFeed article highlighted instances of sexual assault, employees biting each other, bomb scares, and other violence at the facility, as well as nine OSHA violations.