Blue Apron Faces Layoffs After Lukewarm IPO

Blue Apron Faces Layoffs After Lukewarm IPO

On Wednesday, Blue Apron announced it will be implementing “a company-wide realignment of personnel to support its strategic priorities.”

Since going public in June of this year, Blue Apron has been hard at work fixing operational issues in order to grow subscriber numbers and also please investors’ expectations.

As Foodable reported in August, the first quarter report for Blue Apron revealed a surprising $238 million in revenue, a disappointing $31.6 million in losses, and a decline in subscribers (from 1 million to 938,000 customers) leading to a drop in shares.

Since then, the company has been forced to shrink its marketing budget, laid off 14 recruiters and launched a podcast in an effort to become more of a lifestyle brand around home cooking.

Now, the meal-kit competitor is faced to lay off approximately 6 percent of its staff across both corporate offices and fulfillment centers—  that figure will “probably amount to more than 250 layoffs” according to “TechCrunch.”

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Will Amazon's Future Grocery Stores Affect Restaurant Operators?

Will Amazon's Future Grocery Stores Affect Restaurant Operators?

By Mae Velasco, Custom Content Editor

Anyone who doesn’t believe that Amazon.com is one of the biggest innovators in e-commerce and a leader in delivering the ultimate user experience is swimming in de’ Nile. From its early days in 1994 when it began as an online bookstore before diversifying to DVDs, CDS, software, apparel, furniture, and more, to now producing consumer electronics like tablets, e-readers, and Fire TV and providing cloud infrastructure services, this brand has been a giant stomping all over the retail market.

AmazonFresh, a subsidiary effort that launched in 2007 to bring consumers fresh produce and groceries to their door, proves this company is on a mission to cross multiple verticals, and recent news show that Amazon is disrupting industries yet again.

According to Business Insider, Amazon is aiming to open 20 brick-and-mortar grocery stores in the next two years, with up to 2,000 projected AmazonFresh-branded grocery stores over the next decade. Its pilot program will hit major cities including Amazon’s home base, Seattle, Las Vegas, New York, Miami, and the Bay area by 2018.

This isn’t the first time this online retailer has gone from digital to doorway, with a few physical bookstores and pop-up stores in malls, but with its more aggressive push into the $800 billion grocery market, how will this next level of consumer convenience affect restaurant operators in the face of a restaurant recession and the increasing grocery-restaurant price gap?

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Amazon Is Headed For the Grocery Store Industry

Amazon Is Headed For the Grocery Store Industry

By Adria Valdes Greenhauff, Editor-at-Large

There’s no doubt Amazon has been killing it in the world of online retail. From books to bedding, jewelry to sports equipment, there is virtually nothing you can’t order from beloved Amazon.com.

Well, except for maybe certain types of groceries, but that may be about to change. 

Thanks to the tech giant’s grocery delivery project, Amazon Fresh, consumers now have a more convenient way to shop for food online. Still, not every consumer may feel comfortable buying raw meat or fresh produce without seeing it first.

Enter the Amazon grocery store. 

According to Wall Street JournalAmazon plans to open branded brick-and-mortar stores that are, “designed to capture the large share of people who prefer to pick out their produce or bring home their groceries on the way home from work.”

As for the customer who’s all about avoiding the grocery store at all costs, Amazon has them covered too. 

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Will 2015 be the Year of the Takeout Tech War?

In 2014, the battle started between tech takeout companies and in 2015 it is only going to get more intense. According to Business Insider, Americans spread roughly 70 billion a year on food takeout and delivery. Amazon and Uber are planning to tab into to this market and started to test restaurant delivery programs in late 2014. However, they are no where near the leaders in the restaurant takeout and delivery arena. GrubHub still leads by featuring 29,000 restaurants in 600 cities. However, the company is not nearly as profitable as it could be. It has only captured 19% of the $9 billion online ordering market. 

So which company will emerge as the leader at the end of 2015? Will Tech giants, such as amazon "pull an Apple" and swoop in with the service that tops them all? Or will GrubHub continue to lead the pack? Read More  

AmazonFresh Moves to L.A.

Photo Credit: Tech Crunch

Photo Credit: Tech Crunch

AmazonFresh, Amazon's online grocery service, is making moves this week.  The company, originally exclusive to Seattle residents, has expanded its service to L.A. and is setting its sights on San Francisco.  Could this be the new way to shop for groceries?  We've seen companies like this come and go (remember Webvan?), but having fresh food delivered straight to your door fits our busy lifestyles so well that one cannot help but think it will catch on.  According to Tech Crunch, GoogleeBayWalmart, and even startups have been experimenting with similar same day delivery services, all looking to tap into consumers’ desire for conveniences on-call with a tap of a button.

But with grocery items, there are a number of hurdles to overcome – perishable grocery inventory has to be stored and transported refrigerated, which is costly. Getting the margins right is key, and it’s something which Amazon has been working on for years. READ MORE