Walmart Buys NYC Startup Parcel, Boosting Delivery Arsenal Against Amazon

On Tuesday, retail giant Walmart (WMT) announced a new addition to its delivery arsenal: the New York City-based delivery startup Parcel, a company that specializes in same-day and last-mile deliveries.·Zacks

On Tuesday, retail giant Walmart WMT announced a new addition to its delivery arsenal: the New York City-based delivery startup Parcel, a company that specializes in same-day and last-mile deliveries.

Operating though its huge warehouse in Brooklyn, Parcel has become adept at scheduling same-day delivery services in a busy metropolitan area like New York. It often handles deliveries for online retailers like Bonobos, which Walmart recently scooped up, as well as Blue Apron APRN rivals like Chef’d and Martha & Marley Spoon, a meal-kit delivery company working with Martha Stewart.

While Jet already offers same-day delivery on certain orders in certain New York City locations, Walmart’s Parcel acquisition will likely bolster this fast-growing service. Walmart said it hopes to utilize the startup’s network and unique technology to expand deliveries for Jet and Walmart.com throughout NYC.

According to Recode, Parcel’s vast network includes a detailed database of every NYC building it has delivered to, with pictures and information on service entrances. The company also sends updates via text to its clients and their customers in real time.

“Customers’ expectations around delivery and what is possible have changed significantly in the past couple of years. Whatever they need and however they’d like it, we aim to provide – including the ability to offer last-minute ordering with same-day delivery service,” said Walmart.

This announcement is the latest delivery advancement from Walmart. America’s largest brick-and-mortar retailer is planning to test a service in Silicon Valley that delivers groceries to your home, and unloads them for you straight to your refrigerator, even when you’re not home. Walmart is partnering with smart-lock startup August Home and same-day delivery service Deliv.

Both moves are just the latest pushes from Walmart in its rivalry against Amazon.com AMZN. With Parcel, Walmart can hope to better compete against Amazon’s dominating membership and delivery service Prime, and its own growing same-day delivery option.

No deal price was disclosed, though Recode, who cited anonymous sources, said that it was less than $10 million. Parcel will continue to serve its existing clients and growing customer base after the acquisition is complete. And, Parcel’s CEO Jesse Kaplan, six full-time employees, and up to 50 part-time employees will join Walmart in the deal.

Image via: Walmart/Parcel

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