Wal-Mart Acquires Same-Day Delivery Service Parcel to Take on Amazon

11:26 AM, Oct 3, 2017 — Wal-Mart (WMT), the world’s largest retailer, said on Tuesday that it acquired Parcel, a technology-based, same-day delivery startup based in New York in a move seen as an attempt to take on e-commerce giant Amazon.com (AMZN).

“We plan to leverage Parcel for last mile delivery to customers in New York City — including same-day delivery — for both general merchandise as well as fresh and frozen groceries from Walmart and Jet,” according to a statement from Wal-Mart.

Wal-Mart didn’t disclose the price but said it was smaller than what it spent on previous acquisitions this year. The deal closed on Sept. 29. Parcel will continue to serve its current clients in the city, Wal-Mart said.

In August, Amazon stepped up the expansion of its food delivery business with the takeover of Whole Foods. The company said it was slashing prices at Whole Foods. Though its Prime service, Amazon offers same-day and one-day delivery on some items and two-hour delivery in certain areas with Prime Now.

The news of the acquisition comes as a report by Thasos Group, a research firm that tracks location data from mobile phones, showed Walmart’s regular shoppers accounted for 24% of Whole Foods’ new customers in the week of following the acquisition by Amazon. That was the largest percentage.

Companies: Wal-Mart Stores, Inc.
Price: 79.45 Price Change: +1.00 Percent Change: +1.27

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