Wal-Mart adds NY delivery company to e-commerce empire

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Nate Faust, svp/U.S. e-commerce supply chain, Walmart, stated that delivery is a top and increasingly important consideration for today's online shoppers, demanding speed, flexibility, and reliability.

Walmart has purchased Parcel, a delivery logistics startup that focuses on overnight and same-day last-mile delivery, Reuters reports. It started with Jet.com, which Walmart bought for $3.3 billion.

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Just days after insisting that its New York City same-day deliveries for both Walmart and Jet orders were merely a test, the retail giant with this acquisition appears to be solidifying that effort. Walmart's e-commerce grew 63 percent last quarter. Jet already has been testing free same-day delivery of certain orders to customers there, Faust said. Parcel has been handling deliveries for companies like Chef'd and Martha & Marley Spoon and Walmart says it will continue to work with its existing clients.

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

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"New York City is a really unique and complicated market, and that mastery is really rare", Parcel founder and CEO Jesse Kaplan said in an interview. That's why my team spends a lot of time thinking about ways we can make deliveries faster and more convenient for customers.

"Customers' expectations around delivery and what is possible have changed significantly in the past couple of years".

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Walmart is looking at launching a same-day delivery service, but it would be limited to New York City. In January, the company announced free two-day shipping to home and stores and later began to discount items that customers buy online and have shipped to Walmart stores. Wal-Mart also is using its own trucks to deliver groceries to customers in Denver and San Jose, Calif.

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