Walmart buys delivery company Parcel in next round of delivery wars

A new addition has been added to Walmart’s bout of acquisitions: same-day delivery service Parcel. The service’s offerings include evening deliveries and the handling of perishable and frozen foods, as well as partnerships with several meal-kit and grocery companies. The purchase serves as Walmart’s latest move to beat Amazon at delivery, especially in the wake of the online retailer’s $13.7 billion purchase of Whole Foods Market.

Walmart has been working on its delivery game with its acquisition of Jet in 2016, and Vivaldi CEO and Founder Erich Joachimsthaler believes delivery is where Walmart’s focus should lie. In a comment to USA Today, he said, “Walmart always has had one position — being low-priced. But low price has no value if you don’t have convenience. Walmart is under siege and this is the critical piece for them to match the 800-pound gorilla, which is Amazon.” Honing in on delivery—an area dominated by Amazon—and pairing convenience with Walmart’s everyday low prices could be the key to besting Amazon.

Type: News