Blue Apron (NYSE: APRN) has announced its intent to shift towards an asset-light business model through a strategic partnership with FreshRealm, a key provider of fresh meals to top-tier retailers. The two companies have signed a non-binding letter of intent, suggesting a payment of up to $50 million to Blue Apron for the transfer of its operational infrastructure, with additional payments tied to transition, efficiency, and product milestones.
Despite this shift, Blue Apron assures that it will continue to steer its core direct-to-consumer business, focusing on product creation, marketing, customer data, support, and tech. The existing revenue streams aren’t expected to change due to this new partnership.
Shifting to an asset-light model, Blue Apron aims to focus on brand growth and delivering quality products while exploring new offerings for diverse consumers. This change, coupled with streamlining efforts, is designed to improve financials and promote corporate efficiency for better profitability.
A look at the past five trading days for APRN stock highlights the level of impact today’s news had on it. Indeed, shares jumped over 27% at the time of writing. As a result, investors are now up 33.33% during this timeframe.
