The battle between Walmart and Amazon just escalated

05 October, 2017, 00:51 | Author: Cassandra Gardner
  • The battle between Walmart and Amazon just escalated

The retailer announced today that it has acquired technology-based, same-day, and last-mile delivery company Parcel.

The giant retailer has acquired Parcel, a Brooklyn, N.Y. -based company that handles scheduled and same-day delivery services in NY for online retailers like Bonobos and meal-kit companies like Chef'd and Martha Stewart's Martha & Marley Spoon.

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Nate Faust, senior vice president of Wal-Mart's US eCommerce supply chain, said in a company release that Parcel already has partnerships with several meal kit, grocery and e-commerce companies, and has delivered more than 1 million meals in the past two years. But the acquisition of Parcel is a sign the retailer is determined to remain at the "forefront of everything" as consumer expectations evolve. That's why my team spends a lot of time thinking about ways we can make deliveries faster and more convenient for customers.

The mass merchant, which has been experimenting with a raft of e-commerce delivery and pickup options, last week announced it would start offering free, same-day delivery in New York City.

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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. Amazon has built fulfillment centers in major city centers to fulfill Prime Now orders, and Best Buy overhauled and expanded its same-day delivery service earlier this year. It's also began testing a service that recruits Walmart employees to deliver packages to customers on their way home. "Jet has been testing free same-day delivery of certain orders to customers in New York City". So they see it as a big potential and they see the e-commerce piece and felt like they had to solve this problem. The acquisition will help the company offer New Yorkers same-day delivery on purchases.

"I think Wal-Mart is saying, 'People are starting to do this". 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.

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