Founding: Pets.com launched in 1999, founded by web company developer Greg McLemore. Julie Wainwright, previously CEO of Reel.com, was appointed CEO of Pets.com. The company received over $50 million in funding from backers including Hummer Winbald, Bowman Capital, Discovery Communications, Walt Disney, and Amazon.com.
History: Promising to deliver 20 lb. bags of dog food to customers’ doorsteps, Pets.com attracted the attention of reporters and skilled headline writers during the boom days (see “Dog Days for Pet Sites” and “It's a Dog Eat Dead Dog World”).
The company’s famous sock puppet mascot became an icon of the bubble. It appeared in TV ads barking the slogan, “Pets.com. Because Pets Can’t Drive”. An ad featuring the puppet ran during the February 2000 Super Bowl, causing a temporary traffic spike to the site.
What Happened: Pets.com was in a crowded field. Pets.com, Petopia, PetsMart.com, and Petstore.com all launched within months of each other in 1999. Observers questioned the sites' business models, noting the high costs of delivering items such as dog food and the thin profit margins involved.
The company’s February 11, 2000 IPO was a dog – it opened at its offer price ($11), reached a high of $14, before closing the day back at $11. Three days later shares had already fallen to $7.75, leaving many to question the pet category as a whole. Wainwright told The Standard two weeks after the offering that "We came out on a bad day. The IPO is not indicative of this category or our business".
In June 2000, rival Petstore.com went legs up, and Pets.com acquired most of its assets, including its URL, trademark, customer database, and its live fish business, along with the company's marketing partnerships with Safeway and Discovery Communications. Wainwright hoped the deal would allow Pets.com to acquire customers for less.
Other plans were in the works, such as opening a new distribution center and reducing shipping costs, but this wasn't enough to get Pets.com back on its feet. In November 2000, unable to get more funding or find a buyer, Pets.com announced that it would close and sell its assets.
Where Are They Now? The only thing people generally remember about Pets.com is the sock puppet mascot, which happened to be its best-selling item. "This is a company's dream," Wainwright told Forbes in June 2000. "It's amazing how quickly this character has captured people's hearts.” Pets.com was the only company in its niche to achieve an IPO, but its poor performance and the economics of the online pet sector helped bring the company down.
Wainwright is now founder and CEO of women’s community site SmartNow. Greg McLemore remains CEO of WebMagic, the company that founded and developed Pets.com. Wainwright declined to comment when contacted by The Standard, and McLemore could not be reached. All that remains of Pets.com is its sock puppet, the rights to which were bought by subprime lender BarNone. The puppet appears in commercials for the company.
Were you an employee, customer, or client of this service? Then share your memories below. What did you like about the company? What didn't work? What other factors contributed to its success or failure?
Comments
You know, Pets.com still owes me over $1200.000 from aback in the day, it was not surprising that the company went under, it was rough on it's employees and it's partners. They played a lot of stall tactics on money owed for months on end, up to the point where they went away leaving huge bills owed outright.
I would have loved to shove that sock puppet right up their a@&!!!!
YES i also had 2000 dollars they owed to me YES it happened to me to i wanted to order a lot of pets food but they didnt allow for a REFUND.
Those are pretty huge backlogged orders. What types of things did you buy from Pets.com -- gold water bowls? :)
All that remains of Pets.com is its sock puppet, the rights to which were bought by subprime lender BarNone. The puppet appears in commercials for the company.
Wow... a sub-prime lender. The sock puppet appears to be as toxic an employee as Wainwright and McLemore.
BTW... why no mention of their lawsuit against Triumph the Insult Comic Dog for allegedly ripping them off, despite the fact that Triumph predated the sock puppet.
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