Nate Faust, SVP of Walmart E-commerce Supply Chain, said Parcel has partnerships with several meal kit, grocery and e-commerce companies, and has delivered more than 1 million meals in the past two years.
Parcel is a round-the-clock operation that delivers packages the same day, overnight and in scheduled two-hour windows.
“They’ve built a technology platform from the ground up to automate their operations and provide clients and customers with live updates throughout the delivery process. From a warehouse in Brooklyn, Parcel receives packages destined for customers throughout New York City. Using routing algorithms, a fleet of leased trucks and a professional, employee-based workforce, they’re able to quickly sort and load packages for delivery routes,” Faust said.
“Parcel is a proven leader in e-commerce package delivery, including taking fresh, frozen and perishable food, the last mile—that is, the last step in the shipping process as products make their way from a fulfillment center to your door,” he added.
Faust said New York City is the top market for both Jet and Walmart.com and, because of the density of the area and the proximity of its fulfillment centers, “it’s the perfect place for high-impact innovation. Born and bred in New York City, Parcel has developed unique expertise delivering to customers in a distinctly challenging and essential market. This acquisition allows us to continue testing ways to offer fast delivery while lowering our operating costs.”
“But I see even more upside for our own same-day deliveries,” he added. “Jet has been testing free same-day delivery of certain orders to customers in New York City. We can build upon that and plan to leverage Parcel for last-mile delivery to customers in New York City–including same-day delivery–for general merchandise as well as fresh and frozen groceries from Walmart and Jet.”
Tushar Patel, CMO of Kibo Commerce, offered his opinion about Walmart’s decision to purchase Parcel: “With the acquisition of Parcel, Walmart is marching in double time to make sure they get general merchandise, fresh and frozen groceries into the hands of their customers in New York City quickly and conveniently. Last-mile delivery capabilities is a must-have at this point in the grocery delivery game, especially with the continued advancements from Amazon, and Walmart is hoping to take advantage of consumers who see this as a critical part of the shopper journey.
“While the New York City market is a great testing ground for this type of delivery service, there is still the question of cost for this type of convenience,” he said. “How much are consumers willing to pay for same-day delivery service or (are they) willing to trust in the option of in-fridge delivery for that matter? With this news as well as Walmart’s recent venture into partnering with August Home to have associates enter consumers’ homes and put groceries in their fridge in the Silicon Valley Area, Walmart is doing all it can to give its customers the freedom to choose how and when customers can order from them. It will be interesting to see what sticks and how this impacts the greater retail market with accelerating consumer expectations.”