Blue Apron closed its transaction with retail solutions company FreshRealm on Friday wherein the meal kit company transferred its operational infrastructure to FreshRealm, including fulfillment centers, equipment, and related personnel. The transaction has transitioned Blue Apron into an asset-light company, allowing it to focus on the growth of its direct-to-consumer business, according to the company.
Blue Apron expects to accelerate the expansion of its product offerings, including the addition of new convenient options.
According to the contract terms, the meal kit company received approximately $25 million of upfront cash, subject to certain adjustments, and is eligible to receive up to $25 million of value upon the achievement of certain milestones. This sum meant the company could eliminate its debt.
In moving to an asset-light model, Blue Apron plans to execute further streamlining of its business, which includes reduced headcount and administrative costs, and drive additional cost savings and continued year-over-year cash burn reduction.
With the ability to focus on the brand, marketing, product, and consumer experience, Blue Apron expects to be more agile, which will facilitate faster decision-making, enhance its balance sheet, and reduce costs, according to the company.
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