Amazon Files Meal-Kit Trademark, Blue Apron Stock Falls

  • Amazon Files Meal-Kit Trademark, Blue Apron Stock Falls

Amazon Files Meal-Kit Trademark, Blue Apron Stock Falls

Described in the application as "We do the prep, you be the chef", it doesn't take a genius to put two and two together; Amazon is moving in on Blue Apron's territory.

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. And while Blue Apron reported in its IPO filings that it had 1 million subscribers averaging just over 4 orders each, the average order value fell from $59.28 in the first quarter of 2016 to $57.23 in the first quarter of 2017.

One of the concerns among industry watchers is that meal kit delivery services are too expensive, with meals generally topping $12 a serving. Shares of Blue Apron now trades below its IPO price of $10 per share, a decline of about 33%.

Shares of the meal-kit delivery company sank as low as $6.51, a 35 percent drop since its initial public offering. On June 28, Blue Apron went public at $10 a share after Amazon announced a $13.7 billion offer for Whole Foods.

Blue Apron Braces for Amazon Intrusion; Shares Indicated 3.7% lower in Pre-Market Trading

If you are a Blue Apron shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact Jim Baker ([email protected]) at 619-814-4471. But the industry still remains small, with only about 5 percent of USA households using the kits, according to market research firm The NPD Group. This type of burger might have something to do with Amazon's Wagyu beef burgers, which are already for sale.

John Mackey, CEO of Whole Foods Market, is a member of The Motley Fool's board of directors.

Amazon rallied 1.1% to $1,012.95 in recent trading. Considering Amazon is known for affordable prices on all sorts of products, it's possible that the company will create cost-effective meal kits to feed families and groups of more than four people.