Wal-Mart Acquires Jet.com For $3bn
Wal-Mart Stores Inc. is learned to be acquiring Jet.com internet retailer for a deal amount of about $3 billion.
Until now the world’s biggest traditional retailer has acquired fifteen startups to pave way for an e-commerce startup to make itself a dominant player on the internet and narrow down the massive gap with Amazon.
Until now the online division of Wal-Mart has not performed satisfactory. It has been far below the expectations resulting with slowest growth.
Meanwhile, the Jet.com is a new company. It was founded a year ago in July 2015 and comes equipped with a software that offers lower prices to the customers amid adding items to the shopping carts.
Wal-Mart is looking ahead to implement the software in its main website and keep Jet.com as a separate entity.
Chief Executive Doug McMilon said, “One of the things we really like (about Jet) is that the customer is even more in-charge of the price that they pay.”
He added Wal-Mart need some time too in getting the software and design components from Jet.com and so in the short-term both the brands will run separately.
Jet.com was founded by internet entrepreneur Marc Lore and he will henceforth run the new US e-commerce business.
Lore is a renowned name for cofounding Quidsi, which is the owner of several sites including Soap.com and Diapers.com.
Soap.com was sold earlier to Amazon.