Blue Apron May Not Be Worthless After All

Blue Apron May Not Be Worthless After All

There may be an exit strategy that doesn't end badly for Blue Apron (NYSE: APRN) and its shareholders. Supermarket giant Albertsons revealed on Wednesday afternoon that it's acquiring meal-kit upstart Plated for an undisclosed price, a move that's sparking speculation that Blue Apron might become buyout bait itself.

Blue Apron investors can use a break. The stock has shed nearly half of its value since going public at $10 three months ago. One thing weighing on the provider's fall from grace is that Amazon.com (NASDAQ: AMZN) emerged as a rival by testing its own-meal kit delivery service just around the time of Blue Apron's IPO. Albertsons' purchase of Plated makes even more sense in light of Amazon's purchase of Whole Foods Market this summer. If supermarket chains now need to offer the delivery of ingredients for gourmet meals with step-by-step recipe instructions to compete, it's a lot easier to buy an established player. Whole Foods now has Amazon. Albertsons can work with Plated, offering in-store pickup or home delivery of its meal kits. And Blue Apron becomes a viable acquisition candidate for anyone else. 

Image source: Blue Apron.  

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Source: Fool.com