Walmart may soon launch same-day delivery

05 October, 2017, 00:54 | Author: Inez Murphy
  • Walmart has acquired the logistics startup Parcel to help launch same-day delivery in New York City

While Walmart intends for Parcel to continue working with these outside partners, the retailer says the New York-based startup will allow it to service NY, the top market for both Jet and Walmart.com. The purchase of Parcel, a Brooklyn-based specialist in same day, overnight and scheduled deliveries of perishable and non-perishable items, adds to Wal-Mart's push into e-commerce following the $3.3 billion purchase of Jet.com in 2016 and other smaller acquisitions. "Customers' expectations around delivery and what is possible have changed significantly in the past couple of years", Nate Faust, senior vice president, Walmart U.S. e-commerce Supply Chain, said via a company blog post. Jet.com is now testing free same-day delivery of certain orders in New York City and acquiring Parcel - which schedules two-hour delivery windows and uses a fleet of leased trucks to drop off packages - will enable Wal-Mart to build on it.

The parcel deal is the latest move by Walmart to expand its digital footprint and compete with rival Amazon. This acquisition allows Walmart to continue testing ways to offer fast delivery while lowering operating costs.

Just days after insisting that its New York City same-day deliveries for both Walmart and Jet orders were merely a test, the retail giant with this acquisition appears to be solidifying that effort.

Faust said NY, where Parcel is based, is the top market for both Jet and Walmart.com due to the density of the population.

"The traffic in a place like New York City tends to be a pretty big obstacle that we've done an incredible job of optimizing for", Parcel CEO and founder Jesse Kaplan said. Last month, Walmart revealed plans for a pilot grocery-delivery program where drivers put customers' perishable food directly into their refrigerators. So they see it as a big potential and they see the e-commerce piece and felt like they had to solve this problem. The company points out that NYC's high density makes it a great location for same-day delivery.

"I think Wal-Mart is saying, 'People are starting to do this".

Parcel's customers include Bonobos and meal-kit services like Chef'd and Martha Stewart's Martha & Marley Spoon, and will continue to serve current clients, Walmart said.

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