NEW YORK ( TheStreet) -- After raising $220 million in funding before even launching a product, the e-commerce site Jet.com is finally rolling out to a select number of consumers. Jet has been labeled as the newest company to take on Amazon ( AMZN), with its promise of lowest prices and an easy-to-use Web site.
"We're trying to create the most transparent e-commerce site out there for both our merchants and consumers," Jet founder Marc Lore told TheStreet in a phone interview.
Jet is branding itself as Costco (COST)-meets-Amazon, whereby consumers pay $50 a year to have access to low-priced products ranging from food to shoes to sporting equipment. The company estimates its members will save as much as 15% on an average transaction by cutting back on logistics costs.
While the e-commerce industry remains competitive, Lore enters the field with prior experience, having founded Diapers.com, a specialty retailer for baby products, whose parent company Quidsi was acquired by Amazon for about $550 million in 2010.
"Marc Lore is a genius in terms of customer service, and that's what made Diapers work," Piper Jaffray analyst Gene Munster said in an earlier interview with TheStreet. "I'm sure that's going to be part of [Jet too]. It's going to be some wicked good customer experience. If anyone can compete with Amazon, it's Marc Lore -- because he's done it before."
Lore would like nothing better than to cut into Amazon's 2014 revenue of $89 billion. Toward that end, he's using many of Amazon's tactics.