The company said it plans to help Parcel grow its existing customer base while testing same-day delivery service for groceries and Walmart products. The retailer announced today that it has acquired technology-based, same-day, and last-mile delivery company Parcel.
"New York City is a really unique and complicated market, and that mastery is really rare", Parcel founder and CEO Jesse Kaplan said in an interview. "That's why my team spends a lot of time thinking about ways we can make deliveries faster and more convenient for customers", Faust said.
Both sides declined to reveal the terms of the deal, but Recode reported that Parcel's price was less than $10 million.
So far, Walmart has expanded its e-commerce offerings into those traditional left-leaning cities without much of a fight.
Walmart is determined not to be bested by Amazon when it comes to same-day delivery. Parcel receives packages from a variety of partners at its Brooklyn warehouse and uses routing algorithms and a fleet of vans driven by employees to offer same-day, overnight and two-hour package delivery windows.
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. Parcel offers evening deliveries and can also handle perishable and frozen foods.
Walmart is testing a variety of fulfillment strategies it said can meet varying and changing consumer demands including options for store pickup, a recently announced test of in-home delivery, and experiments with employee delivery and partnerships with Google Shopping Express, as well as Uber and Lyft. Two stores in New Jersey and one in Arkansas are participating in the test. Further innovations range from associate delivery to in-building and in-fridge delivery with Latch and August Home. "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.
The move also means Walmart has finally found a home in NY, where it's been blocked in its efforts to open stores for years.