Everybody loves a good deal. The Internet is all about shopping around to find the best price. That is clear. Jet.com is positioning itself as a Costco of the Internet, the Amazon.com with better pricing. Thats an ambitious plan but its hard to understand the investors who have given it a $600m valuation over $140m in capital invested.
With the chatter of frothy valuations, Jet.com, embodies a true irrational exhuberance for tech investing. An Amazon Prime customer pays $99 a year. Amazon may not always provide the best pricing, but it does provide a marketplace platform and more often than not, customers would be getting a good deal in the least. There are stories of customers paying above retail and Amazon using tactics to push users into higher price points, but overall Amazon customers are shopping smart.
Then you have all the perks that come with being a Prime member such as free access to entertainment etc..
Jet is charging 49.99 for the membership. Its mission of always getting better price (which it is then filling from 3rd party sellers) and taking losses makes no sense.
Its interesting how this will play out but I would proceed as an investor with huge caution.