Blue Apron Pursuing Sale or Merger After Another Awful Quarter
Taking heed of the adage, "if you can't stand the heat get out of the kitchen," meal-kit delivery specialist Blue Apron (NYSE: APRN) announced Tuesday that it was pursuing a range of "strategic alternatives" to enhance shareholder value, including a possible sale of the company or a merger with an industry peer.
Although Blue Apron was a pioneer in its niche, popularizing the delivery of healthy, ready-to-cook meals for time-constrained consumers, it quickly became clear that it would be difficult to keep customers coming back for its expensive packages.
Moreover, as other companies entered the market -- including supermarket giants such as Kroger and Walmart, which stocked their own meal kits lines in their stores' refrigerated cases, and at significantly lower prices -- the weaknesses of a delivery-based business model became apparent.
Source Fool.com
