(Bloomberg) — Blue Apron Inc. is shaking up its executive team less than a month after the meal kit delivery company’s initial public offering.
Chief operating officer Matt Wadiak is stepping down from his role and will serve instead as a senior adviser to the company, according to a statement late Tuesday that included other changes to the leadership team. Two other executives, Tim Smith and Pablo Cussatti, will now report directly to CEO Matt Salzberg.
Wadiak co-founded the company and previously served as chief product officer, creating recipes and setting food quality standards. He has significant experience in the prepared-food industry and brought existing relationships with farms and other food suppliers to Blue Apron, No. 197 in the 2017 Internet Retailer Top 500. Wadiak also came up with the company’s current name and logo.
Over the last month, New York-based Blue Apron has been battered by the public market following a disappointing IPO. E-commerce juggernaut Amazon.com Inc.’s (No. 1) bid to buy upscale grocery chain Whole Foods Market Inc. dampened excitement for Blue Apron shares, while some investors and analysts have also questioned whether the company’s meal-kit product has only niche appeal.
Some other analysts on Monday called Blue Apron’s stock a bargain, saying the company has the potential to take market share in the multi-billion dollar fresh-food industry. The shares fell 2.4% in after-hours trading. They closed at $7.50 Tuesday in New York, a 25% decline since its IPO.
According to Top500Guide.com, Blue Apron did an Internet Retailer-estimated $175.6 million in sales last year, up 50% from $117.0 million last year.