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Blue Apron plans to cook up $586.5M at IPO

Blue Apron could soon be worth $3 billion or more. The meal kit delivery company has amended its intent to go public to include a price-per-share range of $15-$17. The company plans to raise $586.5 million at its initial public offering—money it needs to keep its meal kit business going. 

Blue Apron’s desire to go public comes as Amazon has just announced an acquisition of Whole Foods Market. The purchase has unsettled the grocery industry and has traditional supermarkets scrambling for ways to compete on delivery. But this partnership may not be a concern for Blue Apron. The company has made a name for itself bringing cooking kits into homes without a trip to the grocery store. Blue Apron’s biggest hurdle to profitability has to do with how much it spends to acquire customers. (Hint: It’s a lot and it keeps getting bigger.) Rather than worrying about competing with offerings from Amazon and Whole Foods, Blue Apron should be angling to get its goods onto Amazon’s overall grocery platform. 


[Photo: Blue Apron]RR