Monday, February 16, 2015

Jet.com

Marc Lore, founder of Jet.com, says he's figured out a technological way to undercut Amazon.com and now he has his sights set on disrupting the market leader's business model.

Lore sold his previous company Quidsi, which operates Diapers.com and Soap.com, to Amazon in 2010 for $545 million.

Jet.com, which formally launches in April, has a current valuation of $600 million and has already acquired some $140 million in financing, led by Bain Capital.

On Jet.com "you can basically buy anything online at the lowest prices, 10 to 15 percent below [what] you find anywhere else," because you'll see prices drop in in real time, potentially saving hundreds of thousands a year, Lore said in an interview Friday.

When a shopper adds a particular product to their cart, the site will lower the prices of other products that are close in proximity to the selected product's warehouse. Membership will cost $50 a year and orders over $35 will automatically ship for free.

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