Walmart Acquires New York Delivery Company Parcel

  • Walmart Acquires New York Delivery Company Parcel

Walmart Acquires New York Delivery Company Parcel

Wal-Mart Stores announced Tuesday that it acquired NY delivery company Parcel as it girds to compete with Amazon and other supermarkets for home delivery of groceries.

Parcel provides scheduled and same-day delivery services in NY for online retailers and meal-kit companies. The deal, for which terms were not disclosed, gives Walmart access to Parcel's routing algorithms, fleet of leased vehicles, and employees, the retailer said in a blog post Tuesday.

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.

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.

From a demographic point of view, New York City has great strategic value to both Walmart and Jet.com because it's one of the most densely populated areas in the USA and represents a key market. But Parcel will also begin handling same-day deliveries for both Walmart and Jet.com.

Walmart.com will soon begin offering same-day delivery to some customers in New York City, and it has purchased a local startup to help it with the behind-the-scenes logistics. However, it will also work for WMT to delivery goods for it in the future. Walmart said that Parcel will continue to serve current clients. This acquisition allows Walmart to continue testing ways to offer fast delivery while lowering operating costs. Jet has been testing free same-day delivery of certain orders to customers in New York City.

Last month, Wal-Mart unveiled a partnership with August Home and Deliv on a Silicon Valley test that promises store-to-refrigerator delivery. Sources familiar with the matter are saying the acquisition price was less than $10 million. As the cyber and delivery aspects of grocery continue to grow, Deli Market News will bring you the latest. He added that the Parcel acquisition falls into the context of the larger strategy to provide its customers with convenient shopping options.