Walmart wants to wrangle into the city’s same-day delivery sphere with its acquisition of a Brooklyn delivery company called Parcel.
Nate Faust, Walmart’s senior vice president of U.S. ecommerce supply chain, noted in a blog post on Walmart’s website Tuesday that the move would allow the company to offer same-day delivery of groceries and general merchandise to city customers.
“This acquisition allows us to continue testing ways to offer fast delivery while lowering our operating costs,” Faust said in the blog post. “New York City is the top market for both Jet and Walmart.com, and because of the density of the area — along with the proximity to our fulfillment centers — it’s the perfect place for high-impact innovation.”
Walmart declined to disclose the acquisition price. Ravi Jariwala, a company spokesman, said Parcel cost less than Walmart paid for other e-retailers this year, the most expensive of which was Bonobos, a menswear company that cost $310 million.
Jariwala said Parcel would continue to operate as an independent entity, but collaborate with Walmart on expanding its reach and handling last-mile deliveries in the city for Walmart and Jet, which Walmart owns. Jet has been testing out free, same-day delivery service on certain orders placed by New York City customers.
Parcel gathers packages in its Brooklyn warehouse and uses algorithms and a fleet of leased trucks to sort, load and deliver the goods to New Yorkers the same day, overnight and in scheduled two-hour windows.
The 2014-era startup has delivered more than 1 million meals over the past two years and currently works with multiple meal kit, grocery and e-retail companies.
Jariwala said Walmart was not yet sure if Parcel would need to expand its physical footprint or headcount.
Parcel currently employs seven full-time staffers and 45 to 50 part-time drivers, according to founder, Jesse Kaplan.
“We couldn’t be more excited to help the world’s largest retailer innovate in this all-important last-mile space,” Kaplan said in a statement. “Joining forces with Walmart is a truly once-in-a-lifetime opportunity, and we can’t wait to improve the package delivery experience for more online shoppers than ever before.”
