Marc Lore’s Jet.com looks to bite at Amazon’s heels; Germans puts halt to Greece’s bailout extension
Shopping club start-up raises $140 million, but has a long way to go before it will be able to compete with the massive infrastructure and offerings of the market giant
Everyone loves a disrupter, the company that will take down the giant. For the past few years BusinessInsider and other sites have proclaimed nearly everything an Apple killer.
In 2013 Forbes posted a column on 7 reasons Apple was doomed. BuzzFeed, being BuzzFeed, had to out do them in 2014 by having 9 reasons Apple was doomed (it was a bit tongue in cheek). By 2015 the same contributor to Forbes that looked like such a fool was back, but this time with only 6 reasons Apple is doomed.
The next “doomed” company is apparently Amazon, who it is said will face stiff competition from Marc Lore’s new venture Jet.com. The story doesn’t have quite the same energy to it for a couple of reasons: first, Amazon is running in the red, so being doomed is only a variant of its current condition; and second, Jet.com looks to be more a variation of the CostCo model than that of Amazon.
Jet.com will require a membership, like Sam’s Club and CostCo, and will not offer an almost unlimited inventory of goods. Instead, Jet.com will partner with retailers to drive those savings for customers. That is an extra layer that Amazon sometimes doesn’t have (it, too, works with retailers, but often directly with manufacturers).
Jet.com currently has 130 employees, though that is sure to grow now that, as Forbes reports (they seem to like these kinds of stories) they have raised $140 million. Amazon, by comparison, has 88,400 employees.
On the plus side, Forbes is not proclaiming that Amazon is doomed, only that it will have a new competitor. That makes sense, since the only barrier to entry is money – if you can raise, say $140 million, you can try to compete. Everyone can do that, right?
Late last night (early this morning, depending on where you reside) it looked like Greece would have a new deal, one that would grant the country a six-month bailout extension. But, it turns out, the Germans can not help but be the cog in the wheel, rejecting the idea outright.
“The letter from Athens is not a proposal that leads to a substantial solution,” said a spokesman for the German finance ministry. “In truth, it goes in the direction of a bridge financing, without fulfilling the demands of the programme. The letter does not meet the criteria agreed by the eurogroup on Monday.”
Germany seems to be acting on its own, for only one hour earlier a spokesman for the EC president said “President Juncker sees this letter as a positive sign which, in his assessment, could pave the way for a reasonable compromise in the interest of the financial stability in the euro as a whole.”
The dangerous game continues. The euro, which had risen in value on news of a possible deal, quickly reverse course and fell hard. At the time of this post, it is trading at $1.14. Last May it was valued around $1.40.