Walmart.com will shortly begin offering same-day delivery to some customers in New York City, and it has purchased a local startup to assist it with the behind-the-scenes logistics.
The giant retailer has acquired Parcel, a Brooklyn, N.Y.-based company in that handles agreed to be scheduled and same-day delivery services in New York for online retailers like Bonobos and meal-kit companies like Chefâ€™d and Martha Stewartâ€™s Martha & Marley Spoon.
Parcel will continue to serve those clients, yet Walmart will moreover utilize the startupâ€™s technology and network of delivery employees to ramp up its own same-day delivery offerings for both Jet.com and Walmart.com in New York City.
Jet already delivers some orders for no extra fee on the same day they are ordered, and Walmart believes Parcel will assist it reduce the operating costs associated with those deliveries. Walmart.com will moreover start testing same-day delivery in the city soon, and both Jet and Walmart will bid both general merchandise as well as fresh and frozen groceries as part of these new express delivery options.
Parcel sends order updates to its merchant clients and their customers in real time via text messages. The- startup has moreover compiled a database of each one New York City building it has delivered to, in addition to photos and detailed information on service entrances.
â€œNew York City is a really unique and complicated market, and in that mastery is really rare,â€� Parcel founder and CEO Jesse Kaplan asserted in an interview.
The deal comes as more shoppers expect to have the option for same-day delivery when placing online orders, especially when buying consumable products in that get everyday use. Not only does Amazon bid Prime members free two-hour delivery on a limited assortment of goods, it moreover lets these customers get same-day delivery for free on a catalog of more than a million products.
Walmart and Parcel both declined to reveal the acquisition price, yet a source told Recode it was less than $10 million. Parcel, which was founded in 2013, had raised just $2 million from investors, and had pivoted from a consumer-facing startup to a business-to-business startup about two years of time ago.
Along with Kaplan, Parcelâ€™s other six full-time employees will moreover join Walmart. The- companyâ€™s 45-to-50 part-time employees, who sort and deliver orders, will moreover move over in the deal.
In the year since it acquired Jet.com for $3 billion, Walmart has moreover purchased a host online retailers, in addition to Bonobos, ModCloth and MooseJaw under the direction of e-commerce head Marc Lore.
Hereâ€™s an interview with Bonobos CEO Andy Dunn from the recent Code Commerce conference, where we talked about the sale of his company and his new role at Walmart.