Why would a giant like Wal-Mart spend $3 billion on a fledgling company like Jet.com? This chart gives you some clue.
Wal-Mart's e-commerce business growth has been decelerating while Amazon's has been accelerating.
Jet.com's founder Marc Lore has deep experience in e-commerce having founded Diapers.com's parent company, which he sold to Amazon. He's also been up front about his plans to take on Amazon.
Maybe he can fix this chart for Wal-Mart.
"Acquiring Jet.com would allow Walmart to become more competitive with [online retail] giants such as Amazon and eBay," said Michelle Malison, retail analyst at Euromonitor International, in a statement.
Based on the data released by Jet in July, the etailer has shown impressive topline growth, crossing a $1 billion run rate in gross merchandise value with more than 4 million shoppers on its platform, Euromonitor said. The company, which is still investing in its growth, is not yet profitable.
According to Recode, Jet is burning more than $20 million a month on advertising alone.