Jet.com attracts 350 million dollars

Jet.com attracts 350 million dollars

Online retailer Jet.com has attracted 350 million dollars (330 million euro) from its investors, although that means it is still short of its 500 million dollar target.

Compete with Amazon

Jet.com did mention it will have verbal agreements for another 150 million dollars (141 million euro) by the end of the year and intends to use that money to compete with Amazon over the coming holiday season.

 

Some investors state that Jet.com's founder, Marc Lore, is preoccupied with this fight against Amazon. There is actually a bit of history between Lore and Amazon, as his previous online retailer (Quidsi) almost perished under Amazon's rule and was eventually sold to Amazon for 500 million dollars (471 million euro) in 2010.

 

Analysts say that Jet.com will face an uphill battle if it were to compete with Amazon as the competitor already has a extensive logistics network and a loyal customer base. Nevertheless, Jet.com hopes it can entice customers with higher discounts if more is purchased. A subscription fee has already been scrapped.

 

Jet.com has already invested heavily in advertising campaigns, but its October turnover only reached 33 million dollars (31 million euro).

Tags: