Walmart buys Brooklyn startup for same-day NYC delivery

Lloyd Doyle
October 3, 2017

"We plan to leverage Parcel for last mile delivery to customers in New York City-including same-day delivery-for both general merchandise as well as fresh and frozen groceries from Walmart and Jet", the company said in a blog, referring also to e-commerce retailer Jet.com which it bought past year for $3.3 billion. The acquisition price was not disclosed, though Walmart noted the deal was smaller than its previous acquisitions this year, which include Modcloth, Moosejaw and Bonobos. Parcel receives packages from a variety of partners at its Brooklyn warehouse and uses routing algorithms and a fleet of vans driven by employees to offer same-day, overnight and two-hour package delivery windows. In metro areas like NY, it's not unheard of for packages to be lost or stolen if delivered when the recipient is not around to accept it. Amazon's apartment Hubs are the most recent attempted fix for this problem, but Parcel gives recipients more control over when their packages arrive.

According to Walmart's blog, Parcel will continue to serve its existing customers in the New York City area.

Walmart.com will soon begin offering same-day delivery to some customers in New York City, and it has purchased a local startup to help it with the behind-the-scenes logistics.

"We plan to leverage Parcel for last mile delivery to customers in New York City - including same-day delivery - for both general merchandise as well as fresh and frozen groceries from Wal-Mart and Jet", Wal-Mart officials said in a blog post.


What's more, same-day delivery is a way for Walmart to get more business from New York City customers, a market of 8.5 million people that doesn't have a single Walmart location.

This is Walmart's latest attempt to get on Amazon's level when it comes to distribution.

"New York City is a really unique and complicated market, and that mastery is really rare", Parcel founder and CEO Jesse Kaplan said in an interview. Amazon already offers free two-hour delivery to Prime members for some common items as well as same-day delivery for a catalog of over one million items.

Other reports by Iphone Fresh

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