In a move to tackle online giant Amazon dominance over the eCommerce market, Walmart have declared their decision to buy Amazon rival Jet.
Announced by the Wall Street Journal, Jet was established in 2014 to compete directly with Amazon as a refined eCommerce platform, offering customers cheaper prices, but at a sacrifice to service. Since launching. Jet has reported a turnover of over $1billion, with 3.6million customers now using its service.
Walmart is the largest bricks and mortar retail outlet in the Us, but has struggled to compete with Amazon – who have been eroding their customer base with Amazon Prime. Walmart has subsequently struggled to compete with Amazon’s delivery service, but with the acquisition of Jet who already have the logistics in place, this could be Walmart’s answer.
If the takeover is a success, Walmart could upload its products onto Jets platform and directly compete with Amazon for a share of the delivery market. Walmart’s ‘ShippingPass’ costs only $49 a year, in comparison to Amazon Prime – which costs $99 in the US. However, Prime offers customers unique features like Amazon Video, Kindle and others – with the recent launch of its own grocery delivery service. Walmart will have to consider launching similar services, and with Jets platform in its sight, this could be very achievable.