U.S: Amazon meal kit trademark application sends Blue Apron shares tumbling
Shares of meal kit company Blue Apron Holdings took a big hit on Monday after retail giant Amazon moved to register a trademark for a possible rival service, news agency Reuters reported.
The development comes weeks after Amazon announced it was set to acquire Whole Foods Market for US$13.7 billion in a game-changing move. The deal would mark the biggest acquisition for the world's largest online retailer.
Supermarket shares in the U.S. and Europe tanked immediately after the announcement.
On Monday Reuters reported Blue Apron shares tumbled more than 11% to US$6.51, which would represent a drop of nearly 35% since its recent initial public offering of US$10 on June 29.
Investors are said to be concerned about the company's future and the impact of Amazon's planned acquisition amid a rapidly expanding meal kit industry.
In a filing with the U.S. Patent and Trademark Office on July 6, Amazon registered a trademark application for "prepared food kits composed of meat, poultry, fish, seafood, fruit and/or vegetables" that are ready for cooking and assembly as a meal.
Amazon's planned service is reportedly identical to the one offered by Blue Apron, one of the largest meal-kit delivery services in the U.S.