To all the people saying this price is so too low- don't you think that they are doing this to attract a bunch of people to solve the chicken-egg network effect problem first? Then I'm sure they will raise their cut.
They should also have some good reference-able wins as well, and most importably, knowledge of the advisory/selection process well in hand.
I'm in neither market, but I'm very interested to see how this goes, and whether it can be extended to mobile app dev, or longer than 1wk dev projects.