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

Walmart's Jet.com to launch its own grocery brand

Nate Faust, senior vice president of Walmart's US e-commerce supply chain, says Parcel will help Walmart meet customers' growing desire for same-day deliveries.

At the time that Walmart U.S. e-commerce lead Marc Lore announced the development, Bloomberg News found the company's customer service department was unaware the services was forthcoming.

And Walmart, which has been on an acquisition rampage to ramp up its online operations, is now hot on Amazon's heels in the fulfillment arena.

Walmart is determined not to be bested by Amazon when it comes to same-day delivery.

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Parcel specializes in last-mile shipping and offers same-day, overnight, and scheduled two-hour deliveries in New York City, with capabilities to deliver both perishable and non-perishable items.

As one e-commerce subsidiary grows its reach to test private label groceries, Walmart has bought up another in an effort to expand its delivery prowess. Jet has been testing same-day delivery in NY, and Parcel will become the vehicle for that service's expansion.

According to Faust, immediate plans for Parcel focus on maintaining service to existing clients and growing the customer base. From a warehouse in Brooklyn, Parcel receives packages destined for customers throughout New York City. 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. Additionally, the area's density, as well as the proximity of Walmart's fulfillment centers, makes the city the flawless place for "high-impact innovation", Faust asserted. In a statement, Walmart says it plans to use parcel to help with the final steps in getting its merchandise to its New York City consumers.

"Customers' expectations around delivery and what is possible have changed significantly in the past couple of years. And while customers are looking for low prices, we also know they want convenient experiences that make shopping easier". Walmart is even testing a service where customers can have their food delivered to their homes and put away in the refrigerator.

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