This public offering is the first from a much hyped new market. Startups like Plated, HelloFresh, Sun Basket and Home Chef have each raised tens, if not hundreds, of millions in private capital to make meal subscription services mainstream.
Blue Apron, a service that mails you a box of fresh, pre-measured ingredients with the recipe included, is nearing an IPO that is expected to value the company at around $3 billion or even more if there’s enough investor appetite.
The Blue Apron IPO and Amazon’s grocery splurge highlight the growing importance of food.
Next, it could be Google (GOOGL, Tech30) or Uber, both of which have experimented with grocery deliveries. Amazon (AMZN, Tech30) now has the potential to eat Blue Apron’s lunch too and each of the company may be forced into an endless war of discounts and aggressive promotions to get more attention and patronage