New Amazon Competitor Jet.com Raises $140 Million Before Launch
For a while now, Amazon has been a dominant force among e-commerce websites. However, a new start-up company that hasn’t even launched yet, seems to be the next big competitor for Amazon.
The e-commerce start-up in question is Jet.com and is the new project of Marc Lore. Does the name sound familiar? Lore is the same person who sold Daipers.com for $550 million to Amazon. Jet.com has managed to raise $140 million in addition to $80 million it raised earlier.
According to the Wall Street Journal, the investment is a type of debt that can be converted into equity. Moreover, if sources close to the company are to be belived, this investment will boost overall value of Jet.com to $600 million.
In addition to existing backers of Jet, the latest round of financing includes new investors such as General Catalyst Partners, Google Ventures, Norwest Venture Partners, Temasek, Norwest Venture Partners, Coatue Management, Silicon Valley Bank and Goldman Sachs Group Inc.
This makes Jet.com one of the most valued start-up companies around the world, and all that even before launching publicly. The website is scheduled to launch sometime this spring. It uses a software that matches buyers with seller located nearby.
Jet has signed-on with TigerDirect.com, Sears, Sony Store and numerous small retailers.
“At Jet, we see the opportunity to leverage technology and bring price innovation to an unlimited product selection by working collaboratively with our retail partners,” said Lore
He further added: “We don’t compete with our partners; rather, we empower them with pricing tools that enable them to set different rules based on their business goals and profit targets.”
By combining more than one order into a single shipment, buyers will be able to get lower prices. For example, if you wish to buy a baseball bat and sports wear to go with it, the website will show you retailers that offer both in one package. If you choose to go with one of these options, you can save $5 or more on your order.
Moreover, by choosing slower delivery speeds or a retailer close to you, more money can be saved. That’s not all, if you pay with a debit card, you can save 1.5%.
Jet.com pricing model is highly intriguing and without a doubt, it will give Amazon a lot to think about.