Amazon Trademark Filing Puts Target On Blue Apron, Meal Delivery

Andrew Cummings
July 17, 2017

Blue Apron Holdings Inc. shares were down 7.7% in Monday premarket trading after Inc. filed a trademark for a meal kit service.

Shares of the meal-kit delivery company sank as low as $6.51, a 35 percent drop since its initial public offering.

The British newspaper The Times first reported the trademark application on Sunday.

Blue Apron's IPO came just a few day after Amazon announced its agreement to acquire Whole Foods Market Inc. The deal sent grocery stocks tumbling and ratcheted up skepticism about Blue Apron's prospects.

Amazon rose 1.2 percent to $1,013.87 at 10:05 NY.

The meal-kit delivery service - which was forced to slash its IPO price by a third last month on worries about a threat from Amazon's merger with Whole Foods - saw its shares hit again Monday on news that Amazon is planning to launch its own meal-kit delivery service. The $59.94 box, with recipes such as sesame soba noodles and soy-marinated chicken thighs, includes ingredients for three meals for two people.

The product's tagline: "We do the prep". The service will provide customers with "prepared food kits. ready for cooking and assembly as a meal", according to company's application, which was filed July 6. It's worth noting, however, that companies frequently file for trademarks they have no intention of using, either because they changed their mind or because it was just a nuisance filing aimed at keeping a competitor away from the golden words.

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