Quidsi co-founder Marc Lore went on to create another online commerce company, Jet.com, which was bought last year by Walmart for about $3 billion in a move aimed at competing with Amazon.
Amazon shutting down unprofitable Quidsi unit
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Amazon on Wednesday confirmed that it is shutting down its Quidsi unit, which runs websites Diapers.com and Soap.com, due to a persistent lack of profitability there.
Quidsi was an Amazon rival in the US before the online retail made a $545 million deal in late 2010 to buy the startup.
“We have worked extremely hard for the past seven years to get Quidsi to be profitable, and unfortunately we have not been able to do so,” an Amazon spokesperson said in an email reply to an AFP inquiry.
Questions & Answers
Q.Why is Amazon closing Quidsi?
Why is Amazon closing Quidsi?
A.
Amazon is closing its Quidsi unit because it has consistently failed to achieve profitability. Despite significant effort over seven years, the business has not been able to generate a profit.
Q.What will happen to the products sold by Quidsi?
What will happen to the products sold by Quidsi?
A.
Products previously sold by Quidsi, which includes brands like Diapers.com and Soap.com, will continue to be available for purchase directly on Amazon.com.
Q.What will happen to Quidsi's software development team?
What will happen to Quidsi's software development team?
A.
Quidsi's software development team will be reassigned within Amazon. They will now focus on developing technology specifically for AmazonFresh, the online grocery service.
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