Blue Apron’s Bad Recipe

As it soon goes public, Blue Apron needs more online sales to meet investors’ growth appetite. New York-based Blue Apron currently sales its meal-kits in 48 states that reach 99% of the US population, as disclosed in its recent regulatory filing.

Much like early Amazon, Blue Apron has the advantage of selling meal-kits without collecting sales tax, but that could change. In the ten states where it has a physical presence, Blue Apron must collect sales taxes from its customers.

Amazon, in its beginning, did everything to dodge collecting sales tax from customers to maintain competitively low prices. Blue Apron collects sales tax in states where it has offices or distribution centers, such as New York and Texas.

Blue Apron may need to collect sales tax if it expands operations into more states. Additionally, the S-1 warns that Congress could require companies to collect sales tax on Internet Sales.

Besides rising food prices, potential investors should consider the impact of sales tax on Blue Apron’s bottom line.

Vision Fund Goes to India?

Softbank incorporated SB Investment Holdings, Ltd. in England on May 11, 2017. What’s notable is the company was first called SVF India Holdings (UK) as of May 15th when the name changed to the current one.  

Once decoded, the old name, SVP India Holdings, hints at the Vision Fund’s future plans.

First, SVF is an abbreviation for the Softbank Vision Fund. Secondly, India may be another place for investment besides the developed countries such as the United States and United Kingdom.

It may also be Softbank’s intentions to contribute some or all of its existing India investments – Ola, Snapdeal, Paytm – to the Vision Fund.