Meal kit delivery startup Plated has been sold to grocery supermarket chain Albertsons. The segment is being seen as one of the fastest growing and the entry of Amazon, with its Amazon Fresh, after it purchased Whole Foods Inc, has also stirred up the market, and more such consolidation can take place.
The deal, brokered by Credit Suisse Group AG, is reported to be worth anywhere between $175million and $200million. This could well be the price for the change of hands now with the agreement envisaging further “earnout” payments based on the growth figures achieved by Plated.
This investment in a related meal kit delivery business will work well for Albertsons. They have 2000 stores across the US, under the Safeway name and they will now be offering customers the option to either have the meal kit delivered at their address or to pick it from their nearest store. Looking at it from Plated’s perspective, the standalone meal kit services have been going through a downward cure of late and even the biggest among them, Blue Apron has reported poorer earnings and drop in membership.
As mentioned, Amazon’s entry into the segment is bound to cause some disruption in the market. A grocery chain store like Albertsons can delay the inevitable by expanding their offerings to their customers and the acquisition of Plated will do precisely that for them. Albertsons will also retain the founder of Plated on their board as of now. More details of the arrangement will emerge in the days to come.