Rival Meat Subscription Investor Wants To Purchase Blue Apron

Struggling Blue Apron Holdings Inc. APRN, a food kit delivery service, has received an offer from Tai Lopez, an investor in the meat subscription firm Farmers Box.

What Happened

Blue Apron, facing increasing competition and decreasing sales, had said it might "put itself up for sale this month,” when Lopez made his offer last week according to the New York Post.

The potential buyer told the Post that there is a limited market for people who want to cook. Lopez is already contemplating what to do with his purchase, “I think Blue Apron’s core product should be prepared foods and snacks.”

Why It Matters

Blue Apron’s net revenue fell 33% year-over-year to $94.3 million in Q4 2019. Net revenue for 2019 fell 32% to 454.9 million from $667.6 million in 2018. The company lost net $61.1 million in 2019. 

In December 2018, the company had 557,000 customers, which declined to 351,000 in December 2019.

Blue Apron faces stiff competition from Kroger Co KR owned Home Chef as well as Rocket Internet SE RCKZF owned HelloFresh and traditional grocery stores.

Price Action

Blue Apron shares traded 1.44% higher at $2.82 in the after-hours session on Thursday. The shares had closed the regular session 22.47% higher at $2.78.

Photo Credit: Courtesy of Blue Apron.