Why Walmart Just Swallowed Up Jet.com for $3 Billion

Author: Kenneth Gary

The world’s largest retailer announced on Monday that it would buy Jet.com for $3b. 

Additionally, Jet.com will receive $300 million worth of Walmart stock which will be paid in installments.

Walmart is the world’s biggest retailer, and Jet.com is a pretty small player. So why would Walmart want to buy Jet.com? Well, there’s a lot of speculation about this, but no one knows for sure. 

Some say that Walmart is trying to compete with Amazon, and Jet.com is a way to enter the online retail market. Others say that Walmart is just trying to get its hands on Jet.com’s technology, which could help them improve its website.

Whatever the reason, it’s clear that Walmart is doing something big and it’s going to be interesting to see what happens next.

Jet.com Has a Lot of Potential

Jet.com has a lot of potential. It’s young, it’s growing, and it’s got a lot of room to grow. It’s also got a lot of room to learn. Walmart can help Jet.com grow faster and learn faster which is why it is a good seed for Walmart to achieve its goal in the extremely competitive market. 

Jet.com also shares the same values as Walmart: it’s focused on the customers, values, and it’s always looking for ways to improve and do better.

The insider claimed that Walmart chose Jet because of its seasoned management staff in digital retail. 

Walmart Wants To Attract Younger, More Affluent Shoppers

Walmart is hoping that Jet.com will help the company attract affluent shoppers.

The retail giant paid $3 billion for the online retailer, a move that is seen as an attempt to compete with Amazon. Jet.com has been successful in attracting shoppers who are willing to pay more for quick-delivery items.

Walmart is hoping that Jet.com will help it to compete with Amazon, which has been successful in attracting millennials and affluent shoppers.

Win-Win Game

The whole thing makes a lot of sense for both companies, and it’s hard to see how anyone loses in this deal. Walmart gets a huge customer base and a ton of data that it can use to further refine its online offerings.

 Jet.com gets to keep doing what it’s doing, but with the backing of the world’s largest retailer.

For Walmart, the deal is a way to supercharge its online efforts. The company has been working hard to catch up to Amazon, but the journey has been thought. 

In the last year, the company has tried a lot of different things, including opening physical stores dedicated to online orders and partnering with Lyft to offer ride-hailing services to customers. But so far, nothing has moved the needle in a significant way.

The Deal is Expected to Close Later this year

According to Doug McMillon, Walmart is searching for ways to cut costs, extend its range and give the simplest, smoothest shopping experience.

McMillon continued, “We think that buying Jet will hasten our progress on these commitments. Walmart.com will develop more quickly, the seamless shopping experience we’re targeting will materialize more quickly, and we’ll make it possible for the Jet brand to become even more prosperous in less time. Our clients will prosper. This is yet another burst of entrepreneurship that Walmart is receiving.”

The insider said that Walmart is especially interested in Jet’s “smart cart” technology. 

The technology suggests ways for clients to save money, including upping their order sizes, purchasing things that ship from the same place, waiving returns, and choosing a low-fee payment option.

Conclusion

Clearly, Walmart sees Jet.com as a way to take on Amazon, and they’re willing to spend big to make it happen. Only time will tell if the acquisition pays off, but it’s a sign that the retail giant is serious about taking on its e-commerce rival.