Blue Apron Looks to On-Demand Delivery to Stem Price Plunge

Last week, we wrote about how home meal solutions company Goodfood Market (TSX:FOOD) was rocking the Canadian markets, while Blue Apron (NYSE:APRN) was limping along, losing about 85% of its value since its IPO in June 2017.

Blue Apron this week said it is launching a new service as it looks to figure out a way to generate more revenue and claw its way towards profitability. The news was released on Tuesday, but seems to be resonating on Thursday, as the company is bucking the negative day that the broader markets are suffering.

The growth strategy involves Blue Apron aligning with Grubhub and Seamless online and mobile platforms to offer a rotating selection of Blue Apron meals on demand to members in select zip codes in New York City.

The offering, complete with new custom packaging, includes fresh, pre-portioned ingredients for cooking a meal for two to four people at home in 30 minutes or less. Subscribers can add on to the Blue Apron menu with products of partners, including Irving Farm coffee, Vermont Creamery cheeses and certain broths from Brodo.

Blue Apron chief executive Brad Dickerson says the new on-demand meal will be delivered within an hour. Dickerson added that the company plans to expand the on-demand services in the coming months, presumably to a wider delivery base and with a broader selections than the narrow menu currently.

In a world where consumers are getting more and more adamant about wanting their products on their doorstep immediately, the new service may prove beneficial to Blue Apron’s top line, something it desperately needs.

After chewing on the news and taking the stock initially lower after the news release, APRN shares are seeing buying activity on Thursday. As the day winds towards the close, shares are up 11.2% at $1.54.

This article provided by NewsEdge.