The company is partnering with Uber on a grocery delivery test, dropping off online orders from stores in a handful of markets such as Phoenix, Orlando, Fla., Tampa, Fla., and Dallas.
"Parcel built a technology platform from the ground up to automate their operations and provide clients and customers with live updates throughout the delivery process". But Parcel will also begin handling same-day deliveries for both Walmart and Jet.com.
Nate Faust, svp/U.S. e-commerce supply chain, Walmart, stated that delivery is a top and increasingly important consideration for today's online shoppers, demanding speed, flexibility, and reliability.
Walmart has invested heavily in logistics and delivery as one of the primary fronts in its battle against Amazon.
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"Parcel has developed unique expertise delivering to customers in a distinctly challenging and essential market", Faust said in a prepared statement.
As quick and fast delivery, low prices, and vast assortments take center stage to bring in customers, Walmart's acquisition of Parcel looks to be another strategic addition aimed at strengthening its digital capabilities to compete with Amazon.com (AMZN), Target (TGT), and Costco Wholesale (COST). It will allow the retailer to deliver fresh, frozen and perishable goods to customers in the city.
The Walmart announced they had bought the East Williamsburg based delivery service Parcel Tuesday. 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.
The service also helps Walmart tackle the problem of same-day delivery, which is a big problem to solve if the company wants to offer delivery options for perishable items like food. Wal-Mart plans to grow that base.
Walmart has sought to leverage its way into e-commerce through a string of acquisitions. Further innovations range from associate delivery to in-building and in-fridge delivery with Latch and August Home.