Shares of online meal-kit provider Blue Apron Holdings Inc. (APRN - Get Report) soared on Monday, Oct. 29, after the company announced its offerings will be available on Jet.com's "City Grocery," an online and mobile ordering platform popular in the metropolitan New York region.
Blue Apron jumped more than 21% to $1.38 in early trading on expectations that Jet's ability to offer same-day or next-day delivery of Blue Apron meals as part of its broader offering of curated products will help buoy the company's earnings potential.
Blue Apron will be a "priority partner" in Jet's newly launched City Grocery offering, the companies said in a press release. Blue Apron will have a dedicated branded experience featuring a rotating selection of two-serving recipes specifically designed to serve the Jet customer.
"A crucial part of Jet's strategy is to provide valuable services that seamlessly integrate into people's daily lives, and Blue Apron is a great example of this," Jet President Simon Belsham said in a press release.
Launched in 2012, Blue Apron has struggled to expand its customer base and provide its users with more ways to order its food. Its stock, which trades on the Nasdaq, has fallen more than 70% so far this year.
The announcement Monday follows a similar partnership with delivery service GrubHub in New York, announced last month. Blue Apron also has tried selling kits in Costco stores.