Amazon

Amazon Employees Unsure Why Quidsi Got The Boot

Something’s in the air over at Amazon.

Just last week, we reported on Amazon’s decision to part ways with Quidsi due to the company not turning a profit. The eCommerce giant pulled its employees from Quidsi’s offices shortly following the announcement.

While this may be the case for now, some of Amazon’s employees are crying foul.

Upon hearing the news of Quidsi’s departure, some employees shared anonymously with Recode that there was something fishy in the air. The reason to part ways with Quidsi, due to a lack of profit made, came as a shock following an end-of-year-2016 meeting where apparently Amazon said the company would turn a profit in 2017.

While Quidsi has had profitable months sprinkled throughout the past six years since Amazon acquired it, the company has yet to see a full year of profits.

Where did Amazon’s confidence in Quidsi go?

Many are raising concerns about the true reason for Amazon to part ways with Quidsi. It seems that the eCommerce giant is looking to send a message to Wall Street, according to some, that Quidsi’s cofounder, Marc Lore, can’t develop profitable businesses.

The history between Amazon and Diapers.com (which sits under the Quidsi umbrella) paints a picture of a classic frenemies relationship. Apparently Amazon was locked into a pricing war with Walmart to buy Diapers.com. After Amazon bought the site from Lore, he founded Jet.com, which was then sold to Walmart.

The question of why Amazon decided to part ways with Quidi may not ever be truly known. It may be the case of friendly competition as Amazon works to maintain its top spot as the eCommerce king with Walmart fast on its heels.

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