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Petsmart, Idealab Unit in Web Venture

By Karen Kaplan
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An Idealab e-commerce start-up is taking the unusual step of partnering with a bricks-and-mortar business to sell merchandise on the Web. Pasadena-based PetJungle.com announced a strategic alliance with the Phoenix-based pet supply powerhouse Petsmart to create Petsmart.com. The e-commerce venture will use Petsmart’s existing catalog fulfillment operation to supply and ship goods that are ordered on the new Web site, said Phil Francis, Petsmart’s president and chief executive. Petsmart and PetJungle.com will each contribute $10 million in cash and about $20 million in assets to the 50-50 venture, said Idealab Chairman Bill Gross. Petsmart.com will be based in Pasadena and is planning to launch its site by July 1. Gross, who helped create companies such as EToys and CitySearch, said he expects other Idealab start-ups to follow PetJungle.com’s lead by partnering with traditional retailers. Shares of Petsmart rose 28 cents to close at $9.44 on Nasdaq.

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Karen Kaplan

Karen Kaplan covers science and medical research for the Los Angeles Times. She has been a member of the science team since 2005, including 13 years as an editor. Her first decade at The Times was spent covering technology in the Business section as both a reporter and editor. She grew up in San Diego and is a graduate of MIT and Columbia University.

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