Walmart Buys East Williamsburg Package Delivery Service

Posted October 04, 2017

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.

The company also bought internet retailer Jet.com for about $3 billion previous year in the largest-ever deal for an e-commerce startup. Parcel will deliver fresh and frozen groceries from Walmart and Jet.com, as well as general merchandise.

The giant retailer has acquired Parcel, a Brooklyn, N.Y. -based company that handles scheduled and same-day delivery services in NY for online retailers like Bonobos and meal-kit companies like Chef'd and Martha Stewart's Martha & Marley Spoon.

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Parcel, which delivers groceries and other items from third-party retailers, intends to help Walmart with last-mile delivery, known as the final steps in getting packages to consumers.

Faust said NY, where Parcel is based, is the top market for both Jet and Walmart.com due to the density of the population. Its current clients - who it will continue to serve, Walmart said - include meal kit companies like Chef'd and Purple Carrot.

CEO Jesse Kaplan launched Parcel in 2014 to solve a very New York City problem. Parcel's delivery vans have "No doorman?"

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Jet already delivers some orders for no extra fee on the same day they are ordered, and Walmart believes Parcel will help it reduce the operating costs associated with those deliveries.

Walmart has invested heavily in logistics and delivery as one of the primary fronts in its battle against Amazon. It agreed to pay $310 million in cash for online apparel seller Bonobos Inc. earlier this year. Unlike Amazon, however, Parcel says that its deliveries are made through an all-employee workforce. 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.

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