On Wednesday, Amazon AMZN announced it will be shutting down its fourth largest acquisition, Quidsi. Quidsi was acquired by Amazon in 2011 for $545 million and is the owner of Diapers.com and Soaps.com.
The shutdown is due to Amazon’s inability to make Diapers.com and Soaps.com profitable. As a result, a notification sent to the New Jersey Department of Labor shows 263 employees will lose their jobs at Quidsi’s customer service operation in New Jersey.
The story, however, seems to be about a bit more than profitability.
Amazon founder Jeff Bezos has a long running fued with Quidsi founder Marc Lore. Lore was forced to sell to Amazon during the U.S. Great Recession and has been hashing it out with Bezos ever since. Lore, today, runs all e-commerce operations for Amazon’s largest competitor, Walmart WMT. His hopes are to make Walmart the number one U.S. e-commerce site over Amazon.
There’s a possibility that Amazon’s move is partially due to Mr. Bezos’ and Mr. Lore’s rivalry. Even if that’s a fun thought to have, it’s highly unlikely with Amazon’s highly data driven strategies.
“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. Quidsi has great brand expertise and they will continue to offer selection on Amazon.com; the software development team will focus on building technology for AmazonFresh,” said Amazon officials.
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