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renegadebusdallas.com October 21, 2017


Wal-Mart buys NYC delivery service

05 October 2017, 12:51 | Franklin Nunez

Parcel and its founder Jesse Kaplan are now part of Walmart. Parcel

Parcel and its founder Jesse Kaplan are now part of Walmart.    
   Parcel

Walmart announced today (Oct. 3) that it had purchased Parcel, an delivery service that specializes in toting groceries and packages to the apartments of New Yorkers.

The financial terms of the deal were not disclosed. Not only does Amazon offer Prime members free two-hour delivery on a limited assortment of goods, it also lets these customers get same-day delivery for free on a catalog of more than a million products.

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. That goes even more so for a densely populated metro area like NY, the top market for Walmart's website and its Jet.com subsidiary but also one of the toughest to navigate.

Now with the announcement of the Parcel acquisition, how Walmart will facilitate these deliveries has become more clear. 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. That's why my team spends a lot of time thinking about ways we can make deliveries faster and more convenient for customers. Wal-Mart purchased online retailer Jet for more than $3 billion previous year.

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The Brooklyn, N.Y. -based delivery business provides same-day and overnight service throughout New York City using routing algorithms, a fleet of leased vehicles and an in-house workforce to quickly sort, load and convey perishable and non-perishable packages.

Wal-Mart now offers grocery pick-up service at hundreds of stores nationwide and recently began testing same-day delivery at a handful of stores. Wal-Mart plans to grow that base.

"Customers' expectations around delivery and what is possible have changed significantly in the past couple of years", Faust said in an interview on Wal-Mart's official blog. 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. "It's the flawless place for high-impact innovation", he said.



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