Walmart Makes New Acquisition To Shorten Delivery Times

Brandon Parsons
October 5, 2017

The deal comes as Walmart's been looking to streamline its shipping operation to compete with Amazon's hyper-convenient service. Wal-Mart selected Parcel to help navigate last-mile deliveries in New York City because the company has become a "proven leader in e-commerce package delivery", according to Nate Faust, Wal-Mart's senior vice president for its USA e-commerce supply chain. Earlier this month, electronics retailer Best Buy Co. expanded its same-day delivery from 13 to 27 cities.

Faust added that New York City is a top market for Wal-Mart and Jet, both because of its population density and because of its proximity to some of Wal-Mart's distribution centers.

Walmart has sought to leverage its way into e-commerce through a string of acquisitions. From a warehouse in Brooklyn, Parcel receives packages destined for customers throughout New York City. This acquisition allows Walmart to continue testing ways to offer fast delivery while lowering operating costs. 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.

Founded in 2013, Parcel's customers include meal-kit services like Chef'd and Martha Stewart's Martha & Marley Spoon.

Walmart has already been testing out rush deliveries in the city via their website Jet, said Nate Faust, the senior vice president of Walmart's eCommerce supply chain in the United States. It acquired the e-commerce platform for $3 billion a year ago. As the cyber and delivery aspects of produce and grocery continue to grow, AndNowUKnow will bring you the latest.

In addition, Wal-Mart is using store employees to deliver packages to customers on their way home from work shifts. Earlier this year, Jet announced a partnership with Latch, another New York-based startup that offers keyless entry for delivery personnel to leave packages inside a doorman-less apartment building. "No problem" emblazoned on the side in big letters. The acquisition will help the company offer New Yorkers same-day delivery on purchases. "It's the ideal place for high-impact innovation", he said.

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