On Tuesday, Blue Apron said it is estimating a wide range of tactical alternatives. Notably, the effort many include options like an auction of the company or its resources, raising funds, or a business combination. The battling meal-delivery service company has announced the news while announced its new quarterly outcomes. The meal-kit company has reported a loss of about $1.66 per share for Q4. The pit of loss seems much wider than the average estimations of analysts. For now, the company is moving ahead with a formerly revealed plan to shut down a branch in Arlington, Texas. Blue Apron has struggled from the past few years, and that is driving the company towards making such extreme decisions.
Meanwhile, Blue Apron has warned that it is unsure about what could happen. The online meal-kit service went public in 2017, and it has remained one of the most assuring consumer technology start-ups in New York. Time flew quickly, and the one-time unicorn upstart company now has a market cap worth less than $60 million. Blue Apron’s stocks have declined as high as 105 in the after-hours trading on Tuesday after the announcement of financial results and strategic overview. Blue Apron had detailed a scheme in August to reverse its fortunes and revitalize growth. As per the company, it aims to concentrate on selling meal kits, which comprise of recipes and packed ingredients. Along with deploying such kits to more wealthy consumers, Blue Apron intends to carry produces from Beyond Meat Inc.
On the other hand, the company has failed to convince investors of those strategies. Meanwhile, its stock has kept on declining. Even more, attest subscriber data reveals why Blue Apron is opting for sales and mergers. The online meal-kit company has experienced a massive fall as much as 37% in the number of customers. The user base has declined from about 557,000 (in 2018) to 351,000 (in 20190). The primary reason behind the afflictions of Blue Apron remains unclear. It does have a rivalry in the market of a meal kit, particularly from Walmart and Amazon. Well, Blue Apron may have a difficult time refreshing its business if it does not gain the backing and can’t identify what’s going wrong.