Science

Walmart acquires NY last-mile startup Parcel

Walmart acquires NY last-mile startup Parcel

Wal-Mart Stores Inc.is not saying how much it paid for Parcel, other than that it was smaller than a number of acquisitions it's made in the past year. "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".

"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 in a blog, referring also to e-commerce retailer Jet.com which it bought past year for $3.3 billion.

The latest salvo is Walmart's announcement that it has acquired Parcel, a last-mile delivery service.

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. In 2016, it purchased Jet.com Inc. for about $3.3 billion, with the website's founder Marc Lore going on to become head of e-commerce for Wal-Mart. Parcel has New York-centric consumer data that Walmart can make use of, including a database with information on the buildings the company has delivered to, according to Recode. Packages are often sent back to the post office, which tend to close in the early evening.

The deal comes as Walmart's been looking to streamline its shipping operation to compete with Amazon's hyper-convenient service.

Kaplan's idea was to have shipments delivered to Parcel's warehouse.

Outside of New York, Wal-Mart and Jet have offered free two-day shipping for orders of $35 or more, an attempt to blunt the popularity of Amazon's two-day guarantee for members of its Prime program.

Parcel will add to Walmart's ability to deliver to high-density cities, which the company considers a "top market" according to a news release.

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