Shopify is now bigger than Ebay and could soon become big enough to challenge Amazon’s dominance.
The ecommerce platform’s market capitalisation now stands at $42.3 billion, bigger than tech rivals including Twitter, Snap, Lyft and Ebay, which currently has a market value of $33.58 billion.
Tobi Lutke, the Canadian company’s German chief executive, has seen his net worth double to $3.2 billion in just six months, driven by Shopify’s dramatic growth.
Shopify’s stock, which according to the Financial Times Lutke encourages his employees not to watch, has shot up 106 per cent in the
More than 800,000 customers use Shopify’s platform to run their ecommerce sites, and over $100 billion has been spent on Shopify-powered sites since it began operating.
Last year Shopify saw revenues increase a whopping 59 per cent to $1.1 billion, and some analysts have now touted it as a main challenger to Amazon’s dominance.
While Lutke describes it as a “factory for competitors to Amazon” rather than a direct challenger, Shopify’s unique selling point of offering retailers complete control of their ecommerce sites could prove to be a vital difference between itself and Amazon.