Promising cheaper prices than Amazon.com, online shopping club Jet.com opened for business Tuesday, aiming to deliver increasingly bigger savings to members who buy multiple items in a single order.
Jet uses a proprietary technology engine to link items that when purchased together cost less to deliver.
After a free three-month trial, Jet memberships run $49.99 a year, half of the annual cost of Amazon Prime, which features free two-day shipping and other benefits, including streaming video and streaming music.
"There are 90 million households in America that don't have Prime," Jet co-founder and CEO Marc Lore told CNBC's "Squawk Box." "This is going to be the fastest and cheapest shipping option for those households."
"You can save 10 percent to 15 percent versus the lowest prices online," he said. "All the everyday essentials, you get in one to two days. And then everything, two to five days."
Amazon was not immediately available to respond to CNBC's request for comment on Lore's low price claims.