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Walmart Buys Delivery Startup Company

05 October 2017

According to Nate Faust, senior vice president, Walmart U.S. eCommerce Supply Chain, delivery is increasingly one of the most important elements for today's online shoppers, as demands for speed, flexibility, and reliability continue to grow. 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. Walmart will now be able to tap into Parcel'shomegrownn familiarity with the market. That's why my team spends a lot of time thinking about ways we can make deliveries faster and more convenient for customers. The company has partnerships with several meal kit, grocery and e-commerce companies. It will allow the retailer to deliver fresh, frozen and perishable goods to customers in the city.

"The traffic in a place like New York City tends to be a pretty big obstacle that we've done an incredible job of optimizing for", Parcel CEO and founder Jesse Kaplan said. 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. User who signed up for Parcel could schedule a delivery within a 2-hour window, much like the same-day delivery options offered by Amazon.com Inc.in select cities. Recently, the retailer began testing "in-fridge delivery", a service that stocks a customer's refrigerator while he or she is away from home. So they see it as a big potential and they see the e-commerce piece and felt like they had to solve this problem.

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Wal-Mart is sharpening its same-day delivery skills through the acquisition of a small, New York City company.

New York City is also the testing ground for rival Target, which announced plans to purchase Grand Junction in August.

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"I think Wal-Mart is saying, 'People are starting to do this". Walmart also announced that Parcel would continue to dole out services to existing customers, which are growing at a rapid rate, which adds another revenue stream for Walmart.

"I would say they have visions of taking this learning, this creativity, the innovation they come up with in New York City and apply that into other major metropolitan areas", Kent said.

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Walmart Buys Delivery Startup Company