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article imageWould-be Amazon competitor Jet.com raises $80 million

By Simon Crompton     Sep 17, 2014 in Business
With a solid track record behind him, Marc Lore, co-founder of Quidsi.com, is beginning his new startup with $80 million in growth capital and assets.
Lore, best known for selling Quidsi to Amazon in 2010 for $550 million, is building Jet.com with Nathan Faust and Mike Hanrahan, two other Quidsi veterans, as a direct rival to the e-commerce behemoth.
Earlier this year, Jet.com raised $55 million from New Enterprise Associates (NEA), Accel Partners, MentorTech Ventures and Bain Capital. A $5 million facility from Silicon Valley Bank and the latest, $20 million in growth capital from Western Technology Investments brings the Series A round to $80 million.
The signs are eCommerce is booming and investors are ready to invest even in small enterprises. When you consider how easy it is to set up an online shop using Magento and any of the themese available from Finestshops, it's no wonder why.
Although information about Jet.com is being held close to the vest, Lore’s experience in setting up and running e-commerce sites, as well as hints and questions he has asked on his Tumblr show that Jet.com will be a “new kind of e-commerce experience.”
In an earlier post, Lore talked about moving forward with the ideas that started at Quidsi, “As we all know, e-commerce has come a long way in just two decades, altering our expectations around price, selection and service. We now expect the lowest prices, infinite selection and overnight delivery right to our doorstep. This transformation in customer experience is undeniable and, at the same time, I believe there is still a massive opportunity for innovation.”
Jet.com is being set up as a direct competitor to Amazon. The primary difference being Jet will price products based in part to how close they are to the buyer. This could lead to buyers getting their products quicker and less expensively. Including the possibility of same day delivery. This model is already being tested by Amazon and other companies like Walmart, Google, eBay and others.
Quidsi began life as Diapers.com in 2005, selling and shipping childcare supplies over the internet, and quickly entered a period of expansion into other e-commerce areas. Health and beauty supplies, household goods, organic groceries and more were given their own e-commerce site and run under the Quidsi umbrella. Five years later, Amazon bought the company but continue to run it as an independent e-commerce site.
Many of the people associated with Jet.com were originally with Quidsi.
More about Amazon, Jetcom, Ecommerce
 
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