How a pet food startup became a multibillion-dollar powerhouse in just over a decade
In short: Founded in 2011 as Mr. Chewy, the company transformed from a loss-making startup into a retail giant. By prioritizing recurring subscriptions and expanding into veterinary care, it captured a massive share of the American pet market, eventually reaching over $11 billion in annual net sales through strategic growth.
Chewy was established in June 2011 by Ryan Cohen and Michael Day. Despite initial financial losses, the company scaled rapidly. By 2017, it commanded 51% of online pet food sales in the United States. That same year, PetSmart acquired the business for $3.35 billion, marking what was then the largest e-commerce acquisition in history. Under this arrangement, Chewy operated as an independent unit, with Cohen remaining as CEO until March 2018, when he was succeeded by Sumit Singh.
A central pillar of Chewy's business model is its Autoship program, which encourages customer loyalty through automatic recurring shipments. By 2018, this subscription service accounted for 66% of the company's total sales. This model helped sustain growth even during the economic disruptions of the COVID-19 era. In 2019, the company went public on the New York Stock Exchange under the ticker symbol CHWY, eventually achieving a market capitalization of $40 billion.
Beyond retail, Chewy has aggressively diversified into the pet healthcare sector. The company launched a free tele-triage service in 2020, followed by the production of customized prescription medications. In 2022, it introduced the CarePlus insurance and wellness program, and by 2023, it began opening physical veterinary clinics under the Chewy Vet Care brand. These initiatives, alongside consistent growth in its core retail business, have driven annual net sales to $11.86 billion by fiscal year 2024, while the company's gross margin improved to 29.2%.
Today, the company employs more than 18,000 people across the United States. While it has evolved significantly since its founding, the firm remains heavily influenced by its ownership structure, with the private equity firm BC Partners holding approximately 80% of the company and 98% of the voting power following the initial public offering.
Opens the Intellect+ feed with this card first. Swipe up for the next one.
Sources
- Summary by Intellect · source: Chewy (company)
To cite this card, link to https://intellectplus.co.uk/app/culture-chewy-company.
How we source, check and correct cards: Editorial standards.
General information, not professional advice. Spotted an error? Flag the card or see corrections and complaints.
Intellect Plus is a visual educational discovery platform for exploring fascinating facts and ideas. Brain Food, Not Brain Rot. What is Intellect Plus?
Related
More in US culture · More in Cultures · Latest · A–Z · All topics
