In 2010, Amazon bought Quidsi — the e-commerce company responsible for Diapers.com, Soap.com, Wag.com, and other sites — for $US450 million.
Quidsi’s founders, Marc Lore and Vinit Bharara, made a killing, but the sale wasn’t entirely sweet.
Before the acquisition, Amazon had more-or-less declared a pricing war against Diapers.com. Amazon started offering deep, deep discounts on diapers, trying to undercut the smaller company. This was not the first time that Amazon was willing to temporarily lose money to stave off a competitor. Not long after Amazon started its aggressive price chopping, Quidsi sold.
Lore and Bharara stayed at Quidsi for four years on contract after Amazon bought it, but they both left last July. Now, Erin Griffith at Fortune reports that Lore has gathered two other former Quidsi teammates to start a commerce company called Jet. Bharara will reportedly not be involved. The site, which Lore with be working on with Nathan Faust and Mike Hanrahan, won’t launch until later this year, partially because of a non-compete clause from Amazon that hasn’t run out yet.
Lore has said that after selling Quidsi to Amazon, he’s ready to build something new and even bigger. In other words, watch out Amazon.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.
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