One of the pioneers of online meal delivery is close to taking a big financial step.
New York-based Blue Apron Holdings Inc. filed for an initial public offering June 1, which is causing a closer look at how it’s shaping up financially in a growing but increasingly competitive field.
Food retail has always been competitive, but even meal-kit delivery has gotten more crowded as millennials’ lifestyle and spending preferences shape the food market.
With its IPO filing, potential investors are seeing that while revenue is growing, Blue Apron is still not profitable. According to the company’s prospectus, net losses were $54.9 million in fiscal 2016, up from $47 million in 2015, even as revenue has increased from $77.8 million in 2014 to $340.8 million in 2015 to $795.4 million in 2016.
Investors will decide if Blue Apron is a good risk, but analysis from Forbes magazine indicates not everyone is a believer.
Contributor Peter Cohan points out that growth and profitability aren’t as good as he would expect, and investors would not have much influence over the company, as founders Matthew Salzberg and Ilia Papas will retain control after the IPO.