Wal-Mart is buying Jet.com to succeed over Amazon
Wal-Mart has agreed to buy Jet.com, a fast-growing online retailer which was trying to take on Amazon directly, for $3 billion in cash, with another $300 million in stock, the company announced on Monday.
The deal may help Wal-Mart gain growth in its online shopping business, which has slowed in recent quarters. Meanwhile, Amazon's overall sales have rocketed above $100 billion annually."Walmart.com will grow faster, the seamless shopping experience we're pursuing will happen quicker, and we'll enable the Jet brand to be even more successful in a shorter period of time,"
Doug McMillon, president and CEO of Wal-Mart, said in a statement.
This deal follows five-year e-commerce acquisitions for technology to make Wal-Mart a dominant player online. The world's biggest traditional retailer has already bought 15 startups, seeking to narrow the massive gap with market leader Amazon.
Jet.com was launched by internet entrepreneur Marc Lore in July 2015. The software are encourages customers to add various tagged items to their shopping carts, while offering lower price. Jet.com sells 12 million products, from jeans to diapers, and has been growing fast. It has more than 400,000 new shoppers added monthly and an average of 25,000 daily processed orders."One of the things we really like (about Jet) is that the customer is even more in-charge of the price that they pay,"
Wal-Mart has said it would integrate that software into its main website. In a short term Wal-Mart and Jet.com will maintain separate brands. Walmart.com will stay focused on its low-price strategy and Jet.com will continue offering a curated assortment of products. The company intends to maintain the Jet brand to target younger shoppers.