The largest traditional retailer in the world, Walmart that has already 15 start-ups in their bag is on the way to acquire one more start up to lift their online sales. So, the company is all set to pay a lucrative amount of $3 billion to Jet.com for acquiring their excellent pricing software.
Jet.com is an e-commerce start-up founded by Marc Lore in July 2015 and it includes innovative software that is designed to offer lower prices to the customers as they keep adding items in the cart. And, Walmart Inc.’s plan is to integrate that software into their website even though as of now Jet.com will be operating as a complete entity.
The biggest retailer does really well in their business but when it comes to the online division, they have underperformed and their slow growth is the proof of that. Walmart wants to be the dominant player in the online division as well and this is why this acquisition is important. Walmart’ Chief Executive Doug McMillon also went to state that the thing which they like the most about this e-Commerce start-up is that, their customers is more in charge of the price which they pay.
Walmart is All Trying Do is To Bolster Their Online Presence
This announcement came to light on Monday, 8th August and the company is paying $3 billion in cash and $300 million in share to Jet.com, which is really high according to analysts. As Jet.com has revenue of $500 million so, the cash purchase is sixth times of their actual revenue. However, Walmart is all trying do is to bolster their online presence. As of now, they have 10 million items which they want to expand to tens of millions of items in the next few years.
The e-commerce start-up Jet.com has offered 12 million items in the first year of operation which is pretty interesting.