Blue Apron is moving higher after naming a new CEO

Blue Apron

Shares of Blue Apron are up 6.51% on Friday to $US3.18 on news that the company had replaced its CEO.

Matt Salzberg, who helped found the company, announced that he would be stepping down as CEO to allow CFO Brad Dickerson to replace him.

In stepping down, Salzberg said he was proud to have led the company for its first five years, which included taking it public in June, and is confident in Dickerson’s ability to keep moving the company forward.

Blue Apron has struggled massively since going public. Shares are down about 70% from their initial public offering price of $US10, which was the low end of its expected range. Blue Apron has been spending a lot of money to acquire customers who often leave the service after only a few months.

Its IPO also happened in the shadow of Amazon’s $US13.7 billion acquisition of Whole Foods. Shortly after finalising the acquisition, Amazon was seen trialing meal delivery kits that rivaled Blue Apron’s.

Read more about the new CEO here.

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