Walmart Acquires Parcel To Test Same-Day Delivery In NYC

Walmart has acquired the logistics startup Parcel to help launch same-day delivery in New York City

"We plan to leverage Parcel for last mile delivery to customers in New York City - including same-day delivery - for both general merchandise as well as fresh and frozen groceries from Walmart and Jet", the company said.

Faust said that NY is a top destination for Jet.com and Walmart.com, so Parcel, with its experience in the city, provides an opportunity.

The announcement came just a few days after Jet.com, the online retailer Walmart bought a year ago for more than $3 billion, introduced higher-end, online groceries under a private brand that are aimed at younger urbanites. "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.

CEO Jesse Kaplan launched Parcel in 2014 to solve a very New York City problem.

Wal-Mart Stores Inc.is dipping its toes into the same-day delivery market, as the retail giant announced today that it has acquired Brooklyn-based startup Parcel Inc. for an undisclosed amount.

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. Parcel's delivery vans have "No doorman?"


The deal, which Recode valued at less than $10 million, bolsters Walmart's ability to offer rapid delivery options in NY, something Walmart subsidiary Jet.com has already been testing.

Walmart has invested heavily in logistics and delivery as one of the primary fronts in its battle against Amazon.

Although the Parcel acquisition price was not disclosed, Walmart said in a blog post it cost less than other deals this year. The company's 45-to-50 part-time employees, who sort and deliver orders, will also move over in the deal.

In addition to its workforce, Parcel operates an in-house fleet of leased and rented vehicles to manage delivery needs.

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