Blue Apron has filed for an initial public offering amid increasing competition as more companies seek to deliver fresh ingredients and recipes to subscribers. Fred Katayama reports.
Blue Apron has filed for an initial public offering on the New York Stock Exchange. According to the filing, the IPO is valued at up to $100 million for now, and Blue Apron wants to use the proceeds to pay off its debts. It has put in a request for the ticker, APRN. Founded in 2012, Blue Apron quickly became the biggest U.S. meal kit company. It delivers ingredients and recipes so customers can cook meals at home. But the company lost $55 million last year, despite its revenue more than doubling to almost $800 million. Lauren Hirsch covers the story for Reuters. (SOUNDBITE) LAUREN HIRSCH, REUTERS IPO REPORTER (ENGLISH) SAYING: "Not only they are unprofitable, but they're coming up against increasing competition. And it's very easy to decide you want to use Blue Apron one week, and, the next week, switch to another service. So, how do you, both kind of maintain that skyrocketing revenue growth with so much competition, and also work to kind of achieve profitability. That will be the biggest task for them." Blue Apron's competitor, Sun Basket, is also gearing up for an IPO that could come in the second half of the year.