NEW YORK, NY - In an effort to excite investors and boost sales, Blue Apron is changing its executive team’s direction. However, the company looked to those most familiar with its recent rough rides in the market by transitioning its CFO, Brad Dickerson, into the newly opened President and CEO position. Former CEO Matt Salzberg, who is a Co-Founder of the company, has transitioned into his new Executive Chairman role.
“I know that I speak for everyone at Blue Apron in thanking Matt for his leadership and tireless dedication to the company,” said Dickerson in a press release. “I am incredibly excited to assume this new role and for the future of the company. We have an exceptionally talented team at Blue Apron that is focused on taking decisive actions to transform the business, continuing to innovate our product in new and diverse ways, and unlocking future growth opportunities. We remain confident in our previously stated financial guidance for the second half of 2017, and I believe we are taking the right steps to move the business forward.”
After the company’s fall from its $2.2 billion grace, this move is an attempt to bolster itself against the foray of successful competing meal-kit delivery options. It now has a market capitalization of $568 million, as Dickerson’s financial familiarity with Blue Apron now takes center stage.
“It has been a tremendous honor to serve as the CEO of Blue Apron since founding the company and I am incredibly proud of everything our team has accomplished together in just five years,” said Salzberg. “We’ve made meaningful progress toward our top company priorities. Since we completed the transition of volume to our fulfillment center in Linden, New Jersey, less than two months ago, our most recent On-Time-In-Full rates have improved to be in line with our other fulfillment centers. Additionally, as expected, our margins since the end of the third quarter have significantly improved.”
Blue Apron has had a tough go-of-it lately, with the loss of 6 percent of its workforce and the onslaught of news about Amazon’s growth with its acquisition of Whole Foods, as well as Amazon's move into the meal-kit market. But, while the company’s specific market continues to flourish, Blue Apron’s shrinking number of customers, down by 6 percent in its third quarter, has only been met with additional financial woes with its costly business model and new fulfillment center.
Will Dickerson's move into the leading roles assist in Blue Apron's hopeful reignited popularity? AndNowUKnow will continue to keep you up-to-date with the latest.
