With the consolidation of its business, Walmart, the e-commerce giant from the US has acquired the New York-based start-up, Parcel for an estimated $10 million, the company is assuring of the same day delivery of its products ordered through online, according to a Business Insider report. The consolidation came after much market research to acquire Parcel, which was incepted in 2013, which raised in excess of $2 million from investors, noted the report.The parcel was in fact, handling both scheduled and same-day deliveries for meal-kit providers and e-commerce firms such as fellow Walmart acquisition Bonobos, noted the report. Parcel will be able to continue those partnerships, but Walmart will now have access to its technology and network, the report pointed out.Same Day DeliveryStating that by acquiring Parcel, it will not only help Walmart but also Jet.com offer same-day delivery in New York City, Walmart’s e-commerce chief, Marc Lore, said last recently that the retailer will soon provide same-day delivery in New York City, with Jet.com already testing the service, and Parcel should help make that a reality. The start-up has built a database of every New York City building it has delivered to, featuring information and photos for each building’s service entrance to maximize efficiency in an environment that can be hard to navigate quickly. This database should help Walmart and Jet.com hone their delivery in New York City. Moreover, the technology could potentially be applied to other crowded cities where delivery workers face similar difficulties, concurred the report.Popular ConceptSame-day delivery is popular with consumers, and Walmart needs it to combat Amazon. Consumers’ definition of fast shipping is shifting quickly — in 2015, three- to four-day shipping was considered fast, but now, anything over two days is seen as slow, and this window is likely to further narrow in the years ahead. What is more, a quarter of shoppers abandon an online purchase after they learn there is no same-day delivery option, meaning retailers need to find ways to offer the often costly option now before consumers demand the service. Amazon is at the forefront of same-day delivery, and Walmart will need to build out it's own offering beyond New York City if it hopes to catch the e-commerce titan, continued the report.
Parcel’s speedy delivery may also give Jet.com’s new private-label a fighting chance.Jet.com recently announced the launch of its consumables-focused private-label, Uniquely J. The brand will likely be battling offerings like Target Restock, which features similar products and next-day delivery, putting it in the thick of competition from the get-go. If Parcel allows Jet.com to deliver Uniquely J products on the same day as orders are placed, that adds an additional value that could win it a number of customers.Digital ShiftStating that the brick-and-mortar retailers were caught on the wrong side of the digital shift in retail, with many stuck in a dangerous cycle of falling foot traffic, declining comparable-store sales, and increasing store closures, the report went on to add that in excess of 8,600 retail stores could close this year in the US — more than the previous two years combined, citing the brokerage firm Credit Suisse, the report added.Shopping discounts at Walmart.com
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