Blue Apron is one of the most innovative companies in the market today. This is a company that will ship you the ingredients to cook a healthy meal in your home. In the past few weeks, the company went public on the stock exchanges.
Many company leaders thought that the stock would rise quickly. However, it turns out that the company is not as strong as many thought. Since it opened for trading, the stock of Blue Apron has fallen dramatically. Not only that, but Amazon recently came out and said that they were coming up with a food delivery service of their own. This could cause a lot of issues with Blue Apron and take away their market share in the category.
Stock Price
As a public company now, Blue Apron must do all it can to enhance the stock price of the company. There are a lot of people today who are worried about the future of the business. Although home meals are growing within the category, anytime Amazon enters into an industry it tends to disrupt things. Not only that, but few companies in the world can compete with Amazon when it comes to scale and technology. In the coming years, Amazon is going to continue innovating in this area of their business.
It will be interesting to see if Blue Apron becomes a takeover target if the stock continues to fall. In the weeks ahead, many stock investors are watching this company closely.
Debt
Another issue that Blue Apron has is the high levels of debt on the balance sheet. A lot of investors are worried that the company could have solvency issues if this debt is not addressed. Many people today are excited about the services that the company provides, they just want to make sure that the company has the capability of staying in business for a long time.
Future Plans
In the coming years, Blue Apron must develop a plan to gain market share in the category. Sitting back and doing what they have always done is not going to work. A report recently came out showing that Amazon is investing into this area. Amazon is a huge company to compete with, and Blue Apron needs to be prepared to lose market share in the months ahead if they do not take immediate action.