The battle between Walmart and Amazon just escalated

Parcel and its founder Jesse Kaplan are now part of Walmart.    

Parcel and its founder Jesse Kaplan are now part of Walmart. Parcel

Walmart gained serious ground against Amazon on Tuesday in the battle for supremacy in the online delivery game.

Wal-Mart Stores announced Tuesday that it acquired NY delivery company Parcel as it girds to compete with Amazon and other supermarkets for home delivery of groceries.

The financial terms of the deal were not disclosed.

As it moves to make grocery shopping more convenient for consumers, Walmart has acquired Parcel, a technology based, same-day and last-mile delivery company specializing in perishable and non-perishable delivery to customers in New York City. Parcel raised just under $2 million in funding before the acquisition.

"Born and bred in New York City, Parcel has developed unique expertise delivering to customers in a distinctly challenging and essential market", Faust said.

But success could give Wal-Mart the confidence to introduce similar same-day delivery service to other large cities, according to Kent. He noted that Parcel has partnerships with several meal kit, grocery and e-commerce companies.

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Parcel now works with meal kit, grocery and e-commerce companies to provide last mile capabilities.

The Parcel purchase is Walmart's latest acquisition, following its purchase of apparel company Bonobos in June for $310 million and e-commerce retailer in August 2016 for $3 billion.

Parcel works 24 hours a day delivering packages - overnight, same-day, and even in two-hour windows - using routing algorithms, a leased fleet of trucks and a workforce to quickly sort and deliver customer packages.

Walmart subsidiary already offers same-day delivery on some orders in certain areas for no additional cost.

Wal-Mart now offers grocery pick-up service at hundreds of stores nationwide and is testing same-day delivery at a handful of stores. "Whatever they need and however they'd like it, we aim to provide - including the ability to offer last-minute ordering with same-day delivery service", Nate Faust, senior vice president of Walmart's USA e-commerce supply chain, said in a Q&A on Walmart's website. "No problem" emblazoned on the side in big letters.

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