Amazon's next big thing might rival Blue Apron

Chelsea West
July 18, 2017

"You be the chef" as a new trademark-further marks the online giant's intentions to shake up the way Americans buy groceries. Techcrunch noted that Amazon has filed for two other trademarks related to meal kits this year, including another slogan, "We prep".

While the market was quick to send shares of Blue Apron lower Monday morning, tech companies file a plethora of trademark applications that don't always lead to actual services. After the second-biggest cut in IPO price in at least five years, Blue Apron listed with a valuation of $1.9 billion.

Johnson & Weaver, LLP, is investigating potential violations of federal and state laws by certain officers and directors of Blue Apron Holdings, Inc. (NYSE: APRN) ("Blue Apron"). Both meal kits are sold through AmazonFresh.

Amazon already offers meal-kits from third-party vendors, such as Tyson Foods' (TSN - Free Report) Tyson Tastemakers and Sequential Brands Group Inc.'s (SQBG - Free Report) Martha Stewart brand, Marley Spoon.

The Times of London earlier spotted Amazon's trademark filing.

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Blue Apron went public at $10 a share on June 28, days after Amazon announced a $13.7 billion offer for Whole Foods.

Amazon has registered a trademark in the USA for a service described as: "We do the prep". Prior to being acquired by Amazon, Whole Foods had already dipped its toes in the water via a partnership with Salted at select stores. A request for comment to Amazon wasn't immediately returned.

Online grocery shopping still accounts for just about 7% of all grocery orders, although observers expect adoption in the U.S.to increase dramatically: Nielsen expects that share to rise to 20% by 2025.

Amazon rallied 1.1% to $1,012.95 in recent trading. It seems like the next logical step for Amazon's grocery ambitions, and this all points to the fact that Blue Apron doesn't own a competitive advantage in an industry with low barriers to entry - not something investors are looking for.

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