Although he has touted in-store pickup services as the most efficient and cost-effective way to accomplish last-mile delivery across Walmart's store base nationwide, Lore clearly aims to compete with Amazon and other retailers' delivery efforts in larger cities.
"Born and bred in New York City, Parcel has developed unique expertise delivering to customers in a distinctly challenging and essential market", Faust said. Walmart will now be able to tap into Parcel'shomegrownn familiarity with the market. But Parcel will also begin handling same-day deliveries for both Walmart and Jet.com. This acquisition allows Walmart to continue testing ways to offer fast delivery while lowering operating costs.
It also follows a string of e-commerce acquisitions on Walmart's part that started with its $3 billion purchase of Jet.com a year ago and included trendy brands like Bonobos and ModCloth. Its current clients - who it will continue to serve, Walmart said - include meal kit companies like Chef'd and Purple Carrot.
Parcel works 24 hours a day delivering packages - overnight, same-day, and even in two-hour windows - using routing algorithms, a leased fleet of trucks and a workforce to quickly sort and deliver customer packages.
Faust said NY, where Parcel is based, is the top market for both Jet and Walmart.com due to the density of the population.
In addition, Walmart is investing in grocery pick up and delivery programs to complement online shopping and grocery, which is available in more than 900 USA stores. Earlier this year, Jet announced a partnership with Latch, another New York-based startup that offers keyless entry for delivery personnel to leave packages inside a doorman-less apartment building.
John Kent, director of the supply chain management research center at the University of Arkansas, Fayetteville, said the Parcel acquisition is another step in Wal-Mart's mission to develop delivery service solutions for customers. "No problem" emblazoned on the side in big letters. The company points out that NYC's high density makes it a great location for same-day delivery.
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