Walmart has announced the acquisition of New York same-day firm Parcel to remain competitive in the grocery delivery market, following the acquisition of online retailer Jet.com in 2016.
Parcel is a technology-based last-mile delivery company specialising in perishable and non-perishable delivery on the same day to customers in New York City. It also provides services like scheduled evening delivery and custom text message notifications for high-growth e-commerce companies looking to differentiate their customer experience.
Nate Faust, senior vice president, Walmart U.S. eCommerce Supply Chain, explained the reasons behind the acquisition: “Delivery is increasingly one of the most important elements for today’s online shoppers, as demands for speed, flexibility, and reliability continue to grow. That’s why my team spends a lot of time thinking about ways we can make deliveries faster and more convenient for customers. Parcel is a proven leader in e-commerce package delivery, including taking fresh, frozen and perishable food, the last mile – that is, the last step in the shipping process as products make their way from a fulfillment center to your door.”
The delivery firm has partnerships with several meal kit, grocery and e-commerce companies, and has delivered more than 1 million meals in the past two years. “So our immediate plan is for Parcel to continue serving its existing clients and growing its customer base. There’s a lot of upside and I’m excited about the potential there,” Faust said.
“But I see even more upside for our own same-day deliveries. Jet has been testing free same-day delivery of certain orders to customers in New York City. We can build upon that and 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.”
Parcel operates round the clock, seven days a week, delivering parcels on the same day, overnight and in scheduled two-hour windows. It has built a technology platform to automate its operations and provide clients and customers with live updates throughout the delivery process. From a warehouse in Brooklyn, Parcel receives packages destined for customers throughout New York City. Using routing algorithms, a fleet of leased trucks, and a professional, employee-based workforce, it is able to quickly sort and load packages for delivery routes.
Faust added that New York as Parcel’s base played a key role in the acquisition decision. “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 of our fulfillment centers – it’s the perfect place for high-impact innovation. Born and bred in New York City, Parcel has developed unique expertise delivering to customers in a distinctly challenging and essential market. This acquisition allows us to continue testing ways to offer fast delivery while lowering our operating costs.”
