What does the decision to close Quidsi say about the battle between Amazon and Jet.com?
Amazon.com announced yesterday that it is closing Quidsi, operator of Diapers.com, Soap.com and four other sites, after the business failed to turn a profit.
Quidsi, which was co-founded by Marc Lore, current president and CEO of Walmart eCommerce U.S., was acquired by Amazon in 2011 for $550 million. Mr. Lore left Amazon to start Jet.com, which was acquired by Walmart last year. Before founding Quidsi, Mr. Lore started The Pit, an online collectible company, which was sold to Topps in 2001.
Amazon’s decision to close Quidsi will mean layoffs for 263 employees. Some of those losing jobs will have the opportunity to apply for others within Amazon. Quidsi’s software development group will be moved to the AmazonFresh business. While Quidsi is closing, many items on its sites will continue to be sold on Amazon.
“It probably makes sense from a cost and logistical perspective to integrate the operations, including the brands,” Colin Sebastian, an analyst with Robert W. Baird & Co., told The Wall Street Journal.
- Amazon is shutting down Diapers.com — whose founder is now at war with Amazon – Recode
- Amazon to Shut Down Unprofitable Quidsi Division – The Wall Street Journal
- Marc Lore – Walmart
What is your take on Amazon.com’s decision to close Quidsi? Will Amazon’s decision to close Quidsi give Walmart stakeholders concerns about the acquisition of Jet.com and subsequent moves made by the retailer?