Blue Apron Announces Plans to Shift to an Asset-Light Model Through the Transfer of Operational Infrastructure to FreshRealm

Blue Apron (NYSE: APRN) today announced plans for a long-term operations and logistics relationship with FreshRealm, a leading provider of fresh meals to top retailers nationwide, that would see the business shift to an asset-light model. The companies have signed a non-binding letter of intent for up to $50 million payable to Blue Apron for the transfer of its operational infrastructure, as well as when transition, efficiency and product milestones are met.

Blue Apron plans to continue to drive its core direct-to-consumer business, including the creation and marketing of its product, customer data, customer support and consumer technology. The company does not expect changes to its existing revenue streams as a result of this relationship.

By shifting to this asset-light model, Blue Apron plans to focus on further growing its strong brand and delivering the high-quality products its customers have come to expect. The company also plans to add new convenience product options for a broader consumer base in the future.

Upon closing, and together with additional streamlining efforts Blue Apron plans to make, the transaction is expected to enhance the company's balance sheet and drive additional corporate product, technology, general and administrative efficiencies alongside the asset-light model to support the company’s goal of profitability.

“Over a decade ago, Blue Apron pioneered the U.S. meal kit industry and remains a leader in offering delicious, chef-curated meals to thousands of customers every week. As we continue to evolve, we believe there is an opportunity to simplify our direct role in the fulfillment of our product, allowing us to focus on growing our brand, our customer base and revenue in the long-term,” said Linda Findley, Blue Apron’s President and Chief Executive Officer. “We expect that this will allow us to focus all our efforts on providing even greater innovation and convenience to our customers as we remain at the forefront of culinary trends. We are confident that we can continue to deliver the same product our customers know and love, while increasing efficiency and accelerating our path to profitability.”