Monday, July 17, 2017

Amazon Plans to Cook and Eat Blue Apron #Business #Economy #Nutrition

Amazon is cooking up a plan to disrupt the meal-kit delivery business that Blue Apron helped pioneer.

Blue Apron (APRN) shares plunged as much as 11% on Monday following news that Amazon filed to trademark a prepared food-kit service. About one-third of Blue Apron's value has vanished since the company went public late last month.

Amazon's motto for the new venture -- "We do the prep. You be the chef" -- makes it sound an awful lot like 5-year-old Blue Apron, and similar meal-kit delivery services. News of the trademark application was earlier reported by the Times of London.

The Amazon service plans to focus on "ready for cooking and assembly" meals composed of meat, poultry, fish, seafood, fruit and vegetables, according to the paperwork.

Neither Amazon nor Blue Apron responded to requests for comment from CNNMoney.

CNN:  Blue Apron stock gets toasted as Amazon cooks up rival service

It looks like Blue Apron should hold off on any Christmas shopping for, well, forever.

It seems like a tragedy but Blue Apron is based on a simple idea and there's no value added of any particular kind.  That it was immediately copied apparently wasn't even such a surprise and Amazon's announcement resulted in the stock now dropping to 35% off the initial IPO price.  The success of such a venture when it's bereft of any uniqueness is the delivery chain it can use to get it to customers.  Blue Apron has no chance of competing with Amazon on that basis so they're probably doomed.

The Rockhouse doesn't see a tragedy since even now Blue Apron is worth $1.8 million on paper but people are playing about quite a bit with real value versus anticipated value.  There's a whole lot of anticipation in that $1.8 million value and it looks like it was mostly based on fantasy.  On that basis, Blue Apron doesn't likely have much of a prayer.

Washington can play this as they did with AT&T when they broke it down with anti-trust charges.  That was the most magnificent switching network in the world so they broke it into a large number of networks with lesser capability.  That looked peachy on paper but made one hell of a mess of telephone communication which remains in a state of chaos to this day.

Amazon has the best delivery chain around and it's also the biggest.  You can get all bleeding heart if you like about Blue Apron's inability to compete but what's the alternative.  Will Washington break down Amazon the same way to replace it with a bunch of half-ass delivery chains and call them just as good.

Maybe Washington will do it as they have already shown they have no reluctance toward doing stupid things.

Fundamental to any attack on Amazon is the abject failure of the RWM's who owned the blue chips of American retail when they ignored or only made perfunctory efforts toward an online presence with most also doing little or nothing about developing any sophistication in their delivery chains.  They probably blame Amazon for costing them a lot of money but it was their own incompetence which cost them money.

Ed:  RWM?

Rich White Men who constantly talk about thinking outside the box but rarely show much evidence of doing it.

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