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Walmart bought a shipping company for same-day deliveries in NYC
05 October 2017, 12:53 | Rodolfo Quinn
Above Parcel van & driver
Parcel will also continue to service and grow its current clients, Walmart said.
What's more, same-day delivery is a way for Walmart to get more business from New York City customers, a market of 8.5 million people that doesn't have a single Walmart location.
Now with the announcement of the Parcel acquisition, how Walmart will facilitate these deliveries has become more clear. It acquired the e-commerce platform Jet.com for $3 billion a year ago. Lore moved into his current role after Wal-Mart completed the $3.3 billion acquisition of online retailer Jet.com in September 2016.
Walmart has played with a few ideas when it comes to providing cost-effective ways to provide fast delivery. Earlier this month, electronics retailer Best Buy Co. expanded its same-day delivery from 13 to 27 cities.
Jet already delivers some orders for no extra fee on the same day they are ordered, and Walmart believes Parcel will help it reduce the operating costs associated with those deliveries.
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The retailer plans to use the acquisition to beef up its last-mile delivery cababilities in New York City - including same-day delivery - for both general merchandise as well as fresh and frozen groceries from Walmart and Jet, according to the blog post.
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.
Wal-Mart Stores Inc shares were unchanged in premarket trading Tuesday.
"Customers' expectations around delivery and what is possible have changed significantly in the past couple of years", Nate Faust, Senior Vice President of Walmart U.S. eCommerce Supply Chain, said in a statement. So they see it as a big potential and they see the e-commerce piece and felt like they had to solve this problem. And recently, Walmart starting testing out an option that would give delivery drivers access to a customer's home so that groceries ordered online could be put in the fridge if the customer isn't home.
"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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