Blue Apron, the meal-kit company that popularized home-delivered, easy-to-make meals, is being acquired by Wonder Group, a food-delivery company. The deal is worth around $103 million, a significant premium compared to Blue Apron’s current stock price. However, it is considerably lower than the $1.9 billion valuation the company held when it went public six years ago. Despite a promising start, Blue Apron struggled to retain customers in the face of increased competition and supply chain challenges. Wonder Group plans to continue using the Blue Apron brand and incorporate it into their vision of a mealtime super app featuring dishes from renowned chefs and restaurants.
Blue Apron’s stock initially traded at $1,681 in 2017 but has steadily declined since then, reaching $5.49 per share on Thursday. Overall, Blue Apron’s shares have lost more than 99% of their value since the company’s inception. The acquisition by Wonder Group provides immediate and certain value for Blue Apron stockholders at a significant premium over recent trading prices, according to Blue Apron’s president and CEO, Linda Findley. Wonder Group, founded by the creator of Jet.com, plans to leverage its network of kitchens and collaborate with famous chefs like Bobby Flay, Jose Andres, Nancy Silverton, and Michael Symon to create meals based on their menus.
Despite facing its own challenges, Wonder Group aims to develop a restaurant-delivery model focused on delivering culinary excellence. Blue Apron’s acquisition aligns with Wonder’s goal of building a mealtime super app that caters to various occasions with a wide range of cuisines. Blue Apron’s brand and products will remain unchanged, with potential expansion opportunities in the future. This acquisition marks a new chapter for both Blue Apron and Wonder Group as they navigate the evolving landscape of the meal-kit and food-delivery industries.