Amazon tanks Blue Apron's stock with one trademark filing

Violet Tucker
July 18, 2017

"You be the chef", according to the U.S. Patent and Trademark Office records.

Those doubts have hurt Blue Apron, the largest US meal kit delivery company, which has seen its stock tumble since it went public earlier this month.

Blue Apron, which raised about $300 million in the IPO, ships boxes to customers filled with all the raw ingredients needed to make home-cooked meals.

"The target customer who uses a meal kit delivery service is a busy, affluent consumer".

The service sounds similar to meal kit delivery services like Blue Apron and HelloFresh, which regularly mail groceries to a customer's doorstep so that they can cook dishes without any extra trips to the store. That seems on the heels of evidence of its ambitions in the meal-kit market through the form of trademark filing earlier this month. The Motley Fool owns shares of and recommends Amazon and Whole Foods Market.

The product's tagline: "We do the prep". In just the span of a few years, Blue Apron has exposed a business that generated almost $800 million in revenue in 2016 and was able to eke out a small profit in the first quarter that year. Amazon can blunt this marketing edge with its Prime membership and Whole Foods' brand recognition.

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Amazon didn't immediately respond to a request for comment.

The New York-based company had tried to quell fears about potential competition from the e-commerce giant on its IPO roadshow by telling investors that its offering is different than basic grocery delivery, a person familiar with the matter said at the time.

Online grocery shopping still accounts for just about 7% of all grocery orders, although observers expect adoption in the increase dramatically: Nielsen expects that share to rise to 20% by 2025.

Amazon shares rose almost 1 percent to $1010.93 on Monday, up 4.4 percent for the month, while Blue Apron shares were off about 30 percent for July.

Blue Apron fell 9.4 percent to $6.66 at 11:19 a.m., while Amazon rose less than 1 percent to $1,008.11.

Other reports by Guamnewswatch

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