Report: Jet Lands $500 Million In Funding From Fidelity

Jet, looking to go toe-to-toe with Amazon, is reportedly raising $500 million on a $1 billion pre-money valuation.

Fortune reports that Fidelity is leading the round, which has been rumored for quite a while and which Jet has previously confirmed was in the works.

Jet is an ecommerce platform that was founded by Marc Lore, who sold his last ecommerce business Quidsi to Amazon for $545 million in 2010.

The company tries to undercut price of goods sold online, and partners with retailers like Toys R Us, Sports Authority, Barnes & Noble and others for other sources of local inventory.

As a user shops, Jet makes recommendations on other products and gives users savings as they buy more and more items.

The idea is that Jet is calculating, based on the changing shopping cart of each user, which retailer can fulfill the order most efficiently, both in terms of cost and time to the user.

While Amazon has spent years and tens of millions building out a complete logistics infrastructure, Jet wants to offload some of that burden by partnering with retailers and tapping into existing local inventory.

Originally, Jet charged a membership fee to users, but the company ditched that in October.

This funding should come in handy as Jet moves forward with its aggressive plan to hire almost 1,500 new employees by the end of 2016.

Jet declined to comment on this story.