Amazon has been the leading corporate giant when it comes to shopping online, but it seems Walmart is looking to overtake this position. According to the Business Insider, Walmart is on the verge of purchasing Jet.com, a move that is sure to challenge Amazon’s arena in e-commerce.
Jet.com is an online retailer founded by Nate Faust and Marc Lore. Launched in 2015, Jet hopes to provide a competitive alternative to Amazon. Investors have poured in at least $500 million into Jet. The new retailer plans to compete with Amazon by offering lower prices and free shipping for orders over a certain price. Recently Jet distanced itself from its subscription-based service in order to focus on individual transactions.
Walmart wants to purchase Jet in order to meet the needs of a customer base that is increasingly using e-commerce. Even though Walmart already provides online shopping for customers, it is vastly behind Amazon when it comes to fast and free shipping. However, one advantage that Walmart will have over Amazon is distribution centers. Walmart already has stores located all over the United States. With the help of Jet.com, Walmart hopes to turn its online retail it a short, easy and efficient online business.
According to Conlumino CEO Neil Saunders, “It [Walmart] is somewhat jumbled and unfocused which makes it hard for the company to compete with the likes of Amazon… Jet remedies this and would give Walmart a much more focused and powerful offering and platform with which to compete against Amazon.”