Blue Apron latest to suffer in tough meal kit market

By: Dee-Ann Durbin, The Associated Press Posted:

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It's a turbulent time for meal kit companies.

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Hey there, time traveller!
This article was published 20/05/2019 (2645 days ago), so information in it may no longer be current.

It’s a turbulent time for meal kit companies.

Blue Apron said Monday it could be delisted from the New York Stock Exchange because its closing share price has been lower than $1 since early May.

The company’s share price plunged 8% to close at 68 cents.

New York-based Blue Apron will try to raise the price with a reverse stock split. Shareholders will vote on that proposal at the company’s annual meeting June 13.

Subscription-based meal kit companies face numerous problems. They appeal to a small group, the meal prices are high, and once kits arrive, subscribers still have to put the ingredients together.

Companies also have a tough time keeping subscribers, who value the on-demand nature of restaurant or grocery delivery.

Blue Apron hasn’t made a profit since its 2017 IPO.

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