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05 October 2017, 12:52 | Rex Hubbard
The retailer announced today that it has acquired technology-based, same-day, and last-mile delivery company Parcel. In 2016, it purchased Jet.com for about $3.3 billion, with the website's founder Marc Lore going on to become head of e-commerce for Walmart. "Whatever they need and however they'd like it, we aim to provide - including the ability to offer last-minute ordering with same-day delivery service", Nate Faust, senior vice president of Walmart's USA e-commerce supply chain, said in a Q&A on Walmart's website. "Using routing algorithms, a fleet of leased trucks, and a professional, employee-based workforce, they're able to quickly sort and load packages for delivery routes".
Parcel fits into Walmart's recent string of acquisitions around e-commerce.
As quick and fast delivery, low prices, and vast assortments take center stage to bring in customers, Walmart's acquisition of Parcel looks to be another strategic addition aimed at strengthening its digital capabilities to compete with Amazon.com (AMZN), Target (TGT), and Costco Wholesale (COST).
Parcel will work with both Walmart and Jet and cover general merchandise as well as groceries. Not only does Amazon offer Prime members free two-hour delivery on a limited assortment of goods, it also lets these customers get same-day delivery for free on a catalog of more than a million products. From a warehouse in Brooklyn, Parcel receives packages destined for customers throughout New York City. But the retailer sees even more upside for its own same-day deliveries for Wal-Mart and Jet.com.
Walmart said it chose Parcel due to its New York City location, which they note is the ideal place for high-impact innovation. As the cyber and delivery aspects of produce and grocery continue to grow, AndNowUKnow will bring you the latest. The startup has also compiled a database of every New York City building it has delivered to, including photos and detailed information on service entrances. "No problem" emblazoned on the side in big letters.
Wal-Mart is sharpening its same-day delivery skills through the acquisition of a small, New York City company.
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