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They have 20000 customers so that's $2M of membership revenue. There maybe other delivery revenues but surely that can't be more than a small multiple of that.
by khc 9y ago
They have 20000 customers so that's $2M of membership revenue. There maybe other delivery revenues but surely that can't be more than a small multiple of that. How does 500M price tag make sense?
- jdc0589 9y agotheir pricing model is a subscription + an upcharge on purchased goods (10%?). The upcharge may not do much more than pay shoppers and cover some of those associated costs, I don't know, but there's more than just the base subscription revenue.
- ovrdrv3 9y agoMy guess is infrastructure
- ktta 9y agoHalf a billion worth of infrastructure?
- Hasz 9y agoMight be more like "we'd lose more than 500M while we build our own" so a 500M price tag makes sense to have it now.
- ktta 9y agoWould they really? They already have a good amount of developers working on their apps and websites. Now this app will be consolidated as an extra feature on the Target app. I really seem to be missing something here. Jet acquisition made (atleast some) sense because it had much bigger employee count and showed it can run okay. What I know for sure is that the investors are super happy with their returns.