“The Blue Apron unique selling proposition is under fire immediately,” he said. “Amazon is the leader in direct to consumer marketing. They have the order and delivery infrastructure already in place. They could swoop into the market and begin providing their customers the ability to receive the ingredients they need for any recipe that the customer decided.”
Blue Apron, meanwhile, has roughly 200,000 customers, which is small when held up against the millions of potential customers Amazon has the ability to reach, Fosina said.
“The lowering of value of Blue Apron shows that the market knows of the inherent power of Amazon-Whole Foods in this arena and is hedging their bet big time,” he added. “My sense is the value will be much lower as more information comes out of Amazon.”