Does Wal-Mart have the Ability to Fly Over Amazon?

Does Wal-Mart have the Ability to Fly Over Amazon?

If you haven’t heard already, Wal-Mart now owns two-year-old e-commerce startup Jet.com, all at a simple price of $3.3 billion.  Some question why Wal-Mart made this acquisition and feel that it will only worsen their struggles rather than fix them.  Others, including CEO of Wal-Mart, beg to differ for a two good reasons:

1. Jet.com has a unique discount technology never seen before that allows customers to receive discounts with the more they purchase.

  • There are also more store discounts if customers opt out of free returns and pay with a debit card, as opposed to a credit card.

2. CEO of Jet, Marc Lore, has proven more than once that he can create a relatively successful startup company (his first being Quidsi, which was purchased by Amazon) and he’s exactly the person Wal-Mart wants running their online business

Wal-Mart’s growth has seen a big decline over the years, while Jet on the other hand has experienced immense growth in a little more than one year in business.  It’s also been reported that Wal-Mart’s shares hit a 52-week high this month after announcing the acquisition and it’s shares are up 20% (year to date).  Jet.com has been adding close to 400,000 shoppers each month and Wal-Mart is planning to take advantage of that in hopes of competing with front-runner Amazon.com.

 

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