Blue Apron, the start up that delivers pre-packaged gourmet meal kits across the US, for home cooks to whip up in their own kitchens aiming for a whopping $3.1 billion IPO. The New York based company hoping to price 30 million shares at 15 to $17 each, according to an SEC filing Monday.
Reuters correspondent Angela Moon.>> When Blue Apron first started it was delivering about 1 million meals per month, now it's delivering 8 million. So a lot of people are obviously questioning whether their growth has reached a top line. But they are launching other services like wine services. They are also providing a kitchen accessories and other service that they can combine with the meal delivery.
So there's a lot of growth potential.>> Blue Apron's revenue in 2016, more than doubled from the previous year to $795 million, but it's still not making a profit, and there's plenty of competition. Reuters reported in March that Sun Basket, which focuses on organic ingredients has hired banks for an IPO that could come in the second half of the year.
Other rivals include Plated in the United States, Hello Fresh which started in Europe and Chef's Plate in Canada. And that's before you consider Amazon's plan to buy Whole Foods for $13.7 billion.>> The big question is, will Whole Foods Amazon do something similar to what Blue Apron is doing?
Will they be launching their own meal kit delivery service? So Whole Foods already does have ready-to-cook meal kit services available in their stores. Amazon is the best when it comes to logistics, pick-up, delivery. Will those two forces come together and launch something that gonna be a threat to the industry?
We don't know that yet, but if it does it will certainly be a threat.>> Blue Apron's IPO is expected to rise next week.