What Happened to Support Pets.com?
Support Pets.com was a popular e-commerce site dedicated to pet supplies, based in San Francisco and founded in 1998. It rose to fame during the dot-com bubble, appearing in several high-profile advertising campaigns and even the famed Super Bowl XXXIV in 2000, but it closed its doors the same year.
Overview
Pets.com was launched as an online store, offering pet supplies and related products at lower prices than what could be found in normal stores. Additionally, in an attempt to compete with brick-and-mortar stores, the company offered free shipping for orders over $35.
The company received $82.5 million in funding from venture capital firms and went public in February 2000. It quickly gained in popularity, and its mascot, the Pets.com Sock Puppet, became a familiar figure on television and in merchandise. The company released its own mobile application, Pets.com by Miva, in April 2000.
Decline and Closure
Despite receiving a sudden surge in popularity, Pets closed its doors in November 2000 due to issues with its business model. The company was spending too much on advertising, and its attempt to compete with traditional pet supply stores was unsuccessful, as customers were often more comfortable shopping in-person. Additionally, the company’s shipping costs quickly ate into its profits, as the cost of shipping items was often more than the actual items.
After its closure, the company’s assets were sold to other companies and its employees were laid off.
Legacy
Despite its short lifespan, Pets quickly became an iconic symbol of the dot-com bubble, and its Sock Puppet mascot remains popular today. Additionally, it has been estimated that Support Pets.com’s failed venture cost venture capital firms around $80 million.
Other companies and entrepreneurs have since emerged to serve the same market, such as Chewy.com, Amazon.com and Jet.com, all of which have successfully implemented their own version of the business model started by support Pets.com.
Takeaways
Pets.com was a popular e-commerce venture founded during the dot-com bubble, but it quickly closed its doors due to financial difficulties. Its failure has been attributed to issues with its business model, and its legacy remains in other businesses that have since taken up the same model.
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- Support Pets.com was founded in 1998 as an online pet supply store.
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- The company suddenly rose to fame during the dot-com bubble, becoming a symbol of the era.
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- It closed in November 2000 due to financial issues, and its assets were sold to other companies.
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- The failure of support Pets.com cost venture capital firms around $80 million.
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- Other businesses have since taken up the same business model started by Pets com.
