We were looking for the latest news on Jet.com, the Hoboken based e-commerce giant that launched about a year ago. And stumbled across a great interview that Jet’s CEO, Marc Lore, gave this past December.
In little over a year since its launch Jet.com has grown leaps and bounds. It recently raised 500 million that valued the company at $1 billion pre-money (i.e. before counting the new capital raise). And it’s app now stands at #8 in the shopping category at Apple’s App Store – ahead of brands such as Wal-Mart, Etsy, Target and Kohl’s. Originally charging a $50 membership fee, à la Costco, Jet has since dropped the fee to maximize its exposure.
Marc gave Re/code an in-depth interview on his vision for Jet in a recent podcast hosted by Kara Swisher.
You can listen to the full podcast in the player below. Here are some highlights:
- Marc believes the US market for internet commerce will grow to $1 Trillion in the near future. And that the market isn’t a “winner take all” proposition. So building a competitor to Amazon makes sense.
- Jet’s secret sauce is that it works to build in smart efficiencies automatically as you shop. For example consumers are matched to products from distribution centers that make sense in the delivery distribution model. This allows Jet to encourage larger orders that have less shipping costs.
- Marc thinks having Jet’s headquarters in Hoboken makes a lot of sense. They were able to acquire space that would cost twice as much in Manhattan. And with the PATH its location is in many ways more convenient for people who commute from Manhattan.
Re/code DeCode Full Podcast with Marc Lore: