E-marketplace builder Ventro has scored a deal with American Express to create a company to build and operate a new e-marketplace for the company's business products and services.
The new company, MarketMile LLC, will be directed at midsized companies seeking e-purchasing solutions for business services and products like office and industrial supplies, computers and peripherals. Once it is established, the company will expand its reach to small and large businesses as well.
"MarketMile reflects Ventro's focus on partnering with leading industry companies to create the durable B2B marketplaces of the future," says Ventro president and CEO David Perry.
To build the marketplace, the companies plan to leverage the buyer and seller communities in American Express' B2B Commerce Network as well as Ventro's experience in building and operating technology platforms. Ariba technology will be used as a core element.
American Express will have a 65 percent ownership stake in MarketMile, while Ventro will own 35 percent. As time goes on, the company plans to invite other service providers to invest.
"With the resources and commitment of our two founding companies behind it, MarketMile's mission will be to set new standards in customer support and operational reliability for digital marketplaces," says Ed Gilligan, group president of Global Corporate Services at American Express.
The marketplace will offer buyers automated purchasing and payment functionality, increased control and visibility of employee spending levels, procurement tools such as workflow and consortia buying programs, and convenient, comprehensive purchasing located at one customizable site. Suppliers will have access to a comprehensive solution to get online quickly, reduced costs associated with merchandising, customer service and transactions, and targeted marketing and advertising opportunities.
The formation of MarketMile with American Express will be Ventro's sixth operating company. Earlier this year the company joined with Tenet Healthcare Corp. to build an e-marketplace for the health care supply chain.
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