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It’s a jungle out there, all right, and its name is Amazon

There may never be a more fitting name than that of Amazon, the mega online retailer that has come to demonstrate what the term “It’s a jungle out there” really means when referring to the ruthlessness of the business world. And now the food service industry is seeing firsthand how Amazon institutes the "law of the jungle."

July 19, 2017 by S.A. Whitehead — Food Editor, Net World Media Group

There may never be a more fitting name than that of Amazon, the mega online retailer that has come to demonstrate what the term "It's a jungle out there" really means when referring to the ruthlessness of the business world. And now the food service industry is seeing firsthand how Amazon institutes the "law of the jungle."

This week, things are getting pretty heated in food-related business with the news that Amazon had submitted a trademark application with the U.S. Patent and Trademark Office on July 6 for a product the company described as "prepared food kits composed of meat, poultry, fish, seafood, fruit and/or vegetables." Of course, that registration statement pretty accurately describes what Blue Apron already does as one of the largest U.S. meal-kit delivery services.

The result? Blue Apron stock— which just had its IPO at $10 a little more than two weeks ago — plummeted to less than $6.60. In fact, the most fervent activity around Blue Apron in trading lately has been around so-called "put" options that make money if shares fall below $5 by late January. 

The meal-kit delivery service has, in fact, shed nearly 30 percent of its value this month to date. Astonishing when you consider that as a private company, Blue Apron, was valued at $2 billion, and seemed primed add even more value based on research that has shown substantial growth in the U.S. among brands that offered prepared, or partially prepared meals to take home as an alternative to dining out. 

The Whole Foods effect

This all follows closely on the heels of Amazon’s bid to acquire national grocer, Whole Foods, signaling that if Amazon does get into meal kits, it will have an automatic advantage in owning its own grocery and supply chain. 

Granted, U.S. Rep. David Cicilline of Rhode Island has begun to push for a hearing on Amazon’s pending Whole Foods takeover and its effect on American consumers. But, Cicilline is a Democrat and … well … you know the rest.  

As for traders, they appear to be betting on the current king of the jungle, Amazon, which appears only to be growing in value this week. Meanwhile, as Blue Apron shares fall, the question remains as to how much Amazon’s swing through the foodservice business jungle will affect restaurant brands in every category. It may just be the "law" of the jungle from here on out. 

About S.A. Whitehead

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Pizza Marketplace and QSRweb editor Shelly Whitehead is a former newspaper and TV reporter with an affinity for telling stories about the people and innovative thinking behind great brands.