Does Amazon Own Chewy? All You Need To Know in 2024
With Amazon‘s acquisition of many e-commerce brands over the years, pet owners have wondered: does Amazon own popular pet supplies company Chewy?
As a pet care expert, I‘ve done extensive research into the relationship between the two giants of online retail. Keep reading this comprehensive guide to get the facts on whether Amazon owns Chewy, who owns Chewy, and how Chewy competes with Amazon in the growing pet supplies industry.
A Look Back: Chewy‘s Origins and Rise
To understand Chewy‘s relationship with Amazon, it‘s helpful to first understand Chewy‘s founding and meteoric growth as an e-commerce disruptor.
Chewy was founded in 2011 by pet lover Ryan Cohen and Michael Day. Their goal was to create a fast, friendly online pet supplies shopping experience.
The company quickly found success by focusing on:
- Huge selection – Offering a massive inventory of pet foods, medicines, toys, and accessories
- Competitive pricing – Matching or beating prices from major retailers
- Fast shipping – Getting orders to customers in just 1-2 days
- Superior service – Providing 24/7 customer and veterinary support
This laser focus on pet owners led to rapid growth. According to [Pet Business](), Chewy surpassed $26 million in sales in its first year alone – unprecedented for a new pet e-tailer. By 2016, just five years after launch, Chewy‘s sales had skyrocketed to over $900 million.
It‘s this explosive early success that drew Amazon‘s attention…
Who Owns Chewy: The PetSmart Acquisition
In 2017, PetSmart purchased Chewy for a whopping $3.35 billion – the largest e-commerce acquisition ever at that time.
For PetSmart, buying Chewy was a strategic move to expand into online sales and better compete with Amazon as shopping shifts online. While PetSmart operates over 1,650 brick-and-mortar stores, acquiring Chewy gave them a strong e-commerce presence practically overnight.
After the acquisition, Chewy operated independently under the PetSmart umbrella. Ryan Cohen remained CEO until 2018 when he stepped down.
Then in 2019, PetSmart transferred 20% ownership in Chewy to BC Partners, the private equity firm that acquired PetSmart in 2014. This shuffling of ownership marked the beginning of Chewy‘s separation from PetSmart.
Chewy Files for IPO and Regains Independence
The big moment came in June 2019, when Chewy held its initial public offering (IPO) of stock on the New York Stock Exchange. The company traded under the ticker symbol CHWY.
The successful IPO valued the company at $8.8 billion. It marked Chewy‘s shift from a purely private PetSmart subsidiary to a publicly traded company.
So while PetSmart still retains a large stake, Chewy now operates as an independent public company. Amazon does not own any part of Chewy.
Chewy vs. Amazon: By the Numbers
With Chewy‘s independence established, how exactly does it stack up against e-commerce juggernaut Amazon? Let‘s look at some key stats:
According to [1010data](), in 2018 Chewy controlled 50% of the online pet products market while Amazon captured 45%.
A [Packaged Facts report]() reveals that in 2020, Amazon sold 25% of all pet supplies purchased online in the U.S. In the same year, Chewy‘s share was 24%.
| Company | Online Pet Supplies Market Share (U.S.) |
|---|---|
| Amazon | 25% (2020) |
| Chewy | 24% (2020) |
So while Amazon enjoys a larger overall share of e-commerce, Chewy remains hot on their heels when it comes to pet supplies specifically.
How Chewy Competes with Amazon
Despite Amazon‘s commanding presence, Chewy has leveraged its pet expertise and services to carve out a large niche. Some of Chewy‘s advantages that keep Amazon at bay include:
Medications – Chewy‘s licensed pharmacy offers prescribed medications unavailable on Amazon.
Veterinary advice – Chewy provides 24/7 access to veterinarians to consult on pet health issues.
Specialty pet diets – Chewy offers far more specialty foods for allergies, prescription diets, etc. which Amazon lacks.
Consistent pricing – Chewy maintains reliable everyday low prices rather than Amazon‘s fluctuating discounts and coupons.
Superior support – Chewy‘s customer service focuses solely on pet owners with deep knowledge.
Pet expertise – With over 18,000 pet products, Chewy curates its selection through a pet-centric strategy.
By leveraging these differentiators, Chewy has complemented rather than competed directly with Amazon. The result is a profitable, rapidly growing company.
What Pet Companies Does Amazon Own?
While Amazon has not acquired Chewy, they recognize the lucrative market of pet supplies and have invested in their own pet retail brands:
Wag – Amazon‘s own DTC line of pet food, similar to human private labels like AmazonBasics
AmazonBasics – Budget-friendly pet supplies like beds, cages, and feeders
So Amazon has a stake in pet retail through these proprietary brands, even if they haven‘t purchased an established company like Chewy or PetSmart.
The Bottom Line
While Chewy was acquired by PetSmart in 2017, the company now operates as an independent public business after its 2019 IPO. Chewy has successfully carved out a large share of the online pet supplies industry thanks to competitive pricing, superior service, and product specialization.
So to answer the original question – no, Amazon does not own Chewy in 2024. And given Chewy‘s ability to complement Amazon‘s offerings and thrive, that situation likely won‘t be changing anytime soon.
