Deal will facilitate same-day deliveries in New York City
BENTONVILLE, Ark. —Walmart has acquired Parcel, a company specializing in same-day delivery of perishable and non-perishable goods to customers in New York City.
“Delivery is increasingly one of the most important elements for today’s online shoppers, as demands for speed, flexibility, and reliability continue to grow,” Nate Faust, senior vice president, Walmart U.S. e-commerce supply chain, noted on Walmart’s corporate web site. “That’s why my team spends a lot of time thinking about ways we can make deliveries faster and more convenient for customers. Parcel is a proven leader in e-commerce package delivery, including taking fresh, frozen and perishable food, the last mile — that is, the last step in the shipping process as products make their way from a fulfillment center to your door.”
Parcel’s current clients include several meal kit, grocery and e-commerce companies, and Faust says it has delivered more than 1 meals in the past two years. Near term, Parcel will continue to serve its existing customers and expand its customer base.
“But I see even more upside for our own same-day deliveries,” Faust said. “Jet has been testing free same-day delivery of certain orders to customers in New York City. We can build upon that and 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.”
New York is already the top market for both Jet and Walmart, which is not surprising given the city’s population density and the fact that it is underserved by brick-and-mortar Walmart stores.
Walmart described Parcel as a technology-based company, and said it is a 24/7 operation that delivers packages the same-day, overnight and in scheduled two-hour windows, using routing algorithms and a fleet of leased vehicles
Walmart did not disclose the acquisition price, but said it was smaller than previous acquisitions it has made this year.