Blue Apron Holdings Inc. (NYSE: APRN) shares hit an all-time low on Tuesday after it was announced that the meal kit service would be rolling out a new pilot program. The company will now be delivering meal kits on an on-demand basis.
Beginning this week, a rotating selection of Blue Apron meals will be available on-demand to consumers in select zip codes in New York City on the GrubHub and Seamless online and mobile platforms.
The offering, delivered in new custom packaging, includes fresh, pre-portioned ingredients to easily cook two- or four-serving a la carte meals in 30 minutes or less. In addition to Blue Apron meals, consumers can order add-on culinary products from Blue Apron premium suppliers and partners, including Vermont Creamery cheeses, Irving Farm coffee and a selection of broths from Brodo.
The Blue Apron menus will change weekly on GrubHub and Seamless.
Excluding Wednesday’s move, Blue Apron has vastly underperformed the markets, with its stock down about 73% in the past 52 weeks. In just 2018 alone, the stock is down 63.5%.
Brad Dickerson, CEO of Blue Apron, commented:
This new on-demand product is a complement to our core offering, giving consumers–for the first time–the option to have a Blue Apron meal delivered to their doorstep in less than an hour. We are thrilled to launch this initial pilot to expand the reach of our brand, and expect to build on this new competency with additional same day, on-demand platforms over the coming months.
Shares of Blue Apron traded down fractionally to $1.46 Wednesday morning. The consensus analyst price target is $2.71, and the 52-week range is $1.44 to $5.55.