Wal-Mart Stores Inc (WMT) Expands Same-Day Deliveries With Parcel Acquisition

Wal-Mart Stores Inc (WMT) Expands Same-Day Deliveries With Parcel Acquisition

Wal-Mart Stores Inc (WMT) Expands Same-Day Deliveries With Parcel Acquisition

Walmart's rival Amazon offers same-day delivery in NY and other cities, as well as safe drop off spots through Instant Pickup locations and Amazon Lockers.

While the two companies did not disclose the terms of the detail, Recode reported that a source familiar said that Wal-Mart paid $10 million to acquire Parcel, and Wal-Mart noted in a fact sheet for the deal that the price was "smaller than previous acquisitions we've made this year". In addition to this latest step in growth, Jet.com has been testing free same-day delivery of certain orders to customers in New York City.

And Walmart, which has been on an acquisition rampage to ramp up its online operations, is now hot on Amazon's heels in the fulfillment arena.

Jet.com, which Walmart bought past year for US$3.3bn, says the brand, called Uniquely J, will cater to the needs of young urban adults, so-called 'metro millennials'. That's why my team spends a lot of time thinking about ways we can make deliveries faster and more convenient for customers. Some Wall Street analysts have speculated that Amazon will eventually use its newly-acquired Whole Foods stores as mini-warehouses for same-day food delivery.

Wal-Mart plans to leverage Parcel for last-mile delivery of general merchandise and fresh and frozen groceries to customers in New York City, the top market for both Jet and Walmart.com.

Faust said NY, where Parcel is based, is the top market for both Jet and Walmart.com due to the density of the population. Recently, the retailer began testing "in-fridge delivery", a service that stocks a customer's refrigerator while he or she is away from home. The company is testing a new program in a few locations where in-store employees can sign up to deliver orders directly to customers.

Nate Faust, senior vice president of Wal-Mart's US eCommerce supply chain, said in a company release that Parcel already has partnerships with several meal kit, grocery and e-commerce companies, and has delivered more than 1 million meals in the past two years. "No problem" emblazoned on the side in big letters.

"I would say they have visions of taking this learning, this creativity, the innovation they come up with in New York City and apply that into other major metropolitan areas", Kent said.

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