Amazon.com made a bold move three years ago, buying the parent company of Diapers.com for a reported purchase price of more than $500 million. Last year, technology journalist Brad Stone — writing in his book The Everything Store — uncovered some of the heavy-handed tactics that Amazon utilized to take over the fast-growing upstart.
Now, the the former CEO of Quidsi — the parent company of Diapers.com — is getting back into the e-commerce game in a big way. In a blog post today, Marc Lore writes that his new company — dubbed Jet — has raised a $55 million series A financing round from NEA, Accel Partners, Bain Capital Ventures and MentorTech Ventures. That’s a pretty hefty early-stage financing round for an e-commerce player, so it will be interesting to watch what path Jet pursues.
For now, Lore is not saying too much specifically about what his team is building.
“As we all know, e-commerce has come a long way in just two decades, altering our expectations around price, selection and service,” he writes. “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.”
At my previous company Quidsi, we built a brand (Diapers.com) that forged deep personal relationships with moms (and dads) by creating a focused and efficient online experience with amazing customer service. Behind the scenes, this started with logistics – ensuring that customers received their goods quickly. Consumers responded to this idea by becoming champions for our brand and sharing their experience with friends and family.
But there is still more we can do. A lot more.
At Jet we will make use of the latest advancements in technology to create a new shopping experience that will empower customers like never before. Jet will bring unprecedented transparency and efficiencies to the overall e-commerce market, and as a result, will transform the customer experience in a way that, until now, has not been possible.
The Quidsi team certainly figured out a way to compete with Amazon.com early on. Can they do it again?
The news of the funding round was first reported by Re/code, which notes that Lore had previously self-funded the startup, which has grown to more than 30 employees. The Hoboken, New Jersey company is looking to launch next year.