Amazon Technologies, an Amazon subsidiary, filed a July 6 trademark application for “prepared food kits composed of meat, poultry, fish, seafood, fruit and/or vegetables … ready for cooking and assembly as a meal.” The news pushed Blue Apron stock down sharply Monday.
Blue Apron Holdings dropped more than 10 percent Monday on news that Amazon.com filed a trademark application for prepared food kits, the latest sign that investors are concerned about newly public Blue Apron’s prospects.
Shares of the meal-kit delivery company sank as low as $6.51, a 35 percent drop since its initial public offering. It closed Monday’s session at $6.59, down 10.5 percent for the day.
Amazon Technologies, an Amazon subsidiary, filed a July 6 trademark application for “prepared food kits composed of meat, poultry, fish, seafood, fruit and/or vegetables … ready for cooking and assembly as a meal.”
Blue Apron delivers boxes of pre-portioned ingredients and instructions to cook meals at home. The meal-kit company already competes with similar startups as well as grocery delivery services offered by Amazon’s Prime service and Whole Foods Market’s partnership with Instacart. While tech companies routinely file trademark applications and don’t act on them, Amazon’s move indicates it may directly compete with Blue Apron in the future.
The Street earlier reported Amazon’s trademark application.
Blue Apron went public at $10 a share on June 28, days after Amazon announced a $13.7 billion offer for Whole Foods. The deal sent grocery stocks tumbling and ratcheted up skepticism about Blue Apron’s prospects.
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 from basic grocery delivery, a person familiar with the matter said at the time. Amazon’s interest in meal kits directly undermines that pitch.
Blue Apron initially aimed to go public with a valuation of as much as $3.2 billion, but investors weren’t willing to pay up as concerns about competition from a combined Amazon-Whole Foods seeped into the market. After the second-biggest cut in an IPO price in at least five years, Blue Apron listed with a valuation of $1.9 billion. Just twelve trading days…