Walmart Inc.’s Jet.com unit is getting into the same-day grocery delivery market, gearing up to offer the service in New York City.
Bloomberg, citing a statement the company made via email, reported that Jet plans on opening up a fulfillment center in the Bronx in the fall that will enable same-day and next-day delivery of groceries in New York City. In addition to groceries, Bloomberg reported the fulfillment center will store everyday essentials for delivery and select merchandise. Jet told Bloomberg the new fulfillment center will result in the creation of hundreds of new jobs. Jet.com rivals Target and Amazon offer same day delivery in New York City already, with Target charging a fee and Amazon offering it via its Prime membership program.
The move on the part of Jet to get into the same-day delivery of groceries comes at a time when parent company Walmart is pouring more money and focus into its eCommerce initiative to push back against Amazon. By enabling Jet to deliver groceries and everyday essentials to customers in New York City, it will be taking on Amazon. In May Jet announced that is now part of Apple’s authorized reseller program and that it will be selling the full suite of Apple products. That is seen as a competitive win over Amazon, given the Seattle, Washington eCommerce giant only sells a few products. Walmart has long been an authorized reseller of select iPhones, iPad, and Apple accessories.
The deal with Apple comes a few months after Recode reported that Liza Landsman, president of Jet.com, moved on to a new job at a different firm. Reports at the time indicated that Landsman was looking for a change of pace after three frenetic years working to build Jet.com from startup to wholly-owned Walmart subsidiary. Landsman had previously headed marketing at E-Trade.