Lauren Thomas | CNBC | July, 17th 2017
Amazon, whose plans to acquire supermarket chain Whole Foods pose a threat to the grocery industry, appears to be entering the meal-kits business.
Amazon registered a trademark in the U.S. on July 6 for a service described as: “We do the prep. You be the chef.” The service will provide customers “prepared food kits … ready for cooking and assembly as a meal,” according to the trademark application.
The kits will primarily consist of grains, rice, noodles, pasta or bakery products, Amazon said.
This fresh ambition by Amazon will no doubt threaten meal-kits provider Blue Apron, which just recently listed on the public market.
Representatives from Amazon and Blue Apron didn’t immediately respond to CNBC’s request for comment.
Blue Apron holds the title as the largest meal-kit provider in the U.S., followed by German-based HelloFresh.
Since its initial public offering, though, shares of Blue Apron have tumbled. Just last week, the stock closed at a new low after an analyst slapped Blue Apron with a $2 price target, citing difficulty with the business ever becoming profitable. Blue Apron’s stock closed Friday at $7.36 per share, down nearly 10 percent for the week.
On Monday morning, Blue Apron’s stock was falling more than 10 percent, hitting an all-time-low below the $7 mark.