Wal-Mart adds NY delivery company to e-commerce empire

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Walmart says it plans to use Parcel's delivery capabilities for last-mile deliveries to customers within New York City for general merchandise and grocery shipments. The retailer announced today that it has acquired technology-based, same-day, and last-mile delivery company Parcel. That goes even more so for a densely populated metro area like NY, the top market for Walmart's website and its Jet.com subsidiary but also one of the toughest to navigate.

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 acquisition allows us to continue testing ways to offer fast delivery while lowering our operating costs", Faust said. Big city customers have come to expect the option of same-day delivery-especially when it comes to perishables like groceries.

Parcel also provides services such as scheduled evening delivery and customized text message notifications developed for high-growth e-commerce companies looking to differentiate their customer experience.

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Recode reported citing a source that the acquisition price was less than $10 million.

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. It offers grocery deliveries via Uber and Lyft in some regions.

Walmart has already been testing out rush deliveries in the city via their website Jet, said Nate Faust, the senior vice president of Walmart's eCommerce supply chain in the United States. Earlier this year, Jet announced a partnership with Latch, another New York-based startup that offers keyless entry for delivery personnel to leave packages inside a doorman-less apartment building.

Now with the announcement of the Parcel acquisition, how Walmart will facilitate these deliveries has become more clear.

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