Jet.Com In 2022 (What It Is, Does Walmart Own It + More)
Walmart’s current logo since 2008
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Walmart Home Office (headquarters) in December 2012
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| Formerly |
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| Type |
Public |
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ISIN |
US9311421039 |
| Industry |
Retail |
| Founded |
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| Founder |
Sam Walton |
| Headquarters |
,
U.S.
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Number of locations
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 10,593 stores worldwide (January 31, 2022) [2] [3] |
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Area served
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Worldwide |
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Key people
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| Products |
Supermarket , Hypermarket , Superstore , Convenience shop |
| Services | |
| Revenue |
US$ 559.2 billion (2020) [4] |
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US$22.55 billion (2020) [4] |
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US$13.70 billion (2020) [4] |
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Total assets |
US$252.5 billion (2020) [4] |
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Total equity |
US$87.53 billion (2020) [4] |
| Owner |
Walton family (50.85%) [5] |
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Number of employees
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2,300,000 (Jan. 2021) [4] U.S.: 1,600,000 |
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Divisions |
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Subsidiaries |
List of subsidiaries |
| Website |
walmart.com |
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Footnotes / references [6] [7] [8] |
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Jet.com is an eCommerce retailer which offers low prices on grocery items. However, there are many questions as to whether Walmart actually owns Jet.com. Jet.com is still profitable, even though it may be owned by Walmart.
Jet.com: Was It Really?
Founded by Diapers.com creator Marc Lore, Jet.com was a promising e-Commerce site rivaling Amazon Fresh before Walmart purchased the website to expand its e-Commerce department, compete with Amazon, and reach younger, more affluent shoppers. In 2020, however, the partnership fell apart after just three years.
Jet.com – What Did You Do?
Jet.com, founded and run by Marc Lore, founder of Diapers.com online grocery store, was once an American company.
It was essentially the Amazon Fresh Marketplace. Discounts were not linked to premium memberships, unlike Amazon.
Instead, as you add items to your virtual shopping cart, the app would offer you incentives to purchase more. All options will be clearly shown during checkout.
Jet.com may also have incentives like the following:
How Much Does A Jet.com Member Cost?
Initially, founders wanted to provide a 90-trial period where shoppers are given free access to test out the website. After that, they would pay an annual membership fee of $50.
Jet.com was able to cancel the plan at an early stage of planning.
However, the decision led to early failures in the company prior to Walmart intervention in 2016.
Why was Walmart able to purchase Jet.com
Walmart became Jet.com’s biggest shareholder in October 2016 when it bought 30% of the company for $3 billion.
Walmart’s shares had an October 2016 value of $3 billion. However, they only valued $1 billion as of June 2017.
Walmart, which was not surprising, bought Jet.com to compete with Amazon. They were concerned Amazon would move too far into grocery and outcompete Walmart.
Walmart felt that Jet.com was an online shopping hub and this could be a way to increase sales, similar to how Walmart expanded in new markets.
Walmart also bought Jet.com in order to save the company that was financially struggling at the time it purchased it.
Walmart acquired Jet.com, a merged online grocery site, so that both companies could compete with Amazon.
Walmart’s acquisition of Jet.com brought it some amazing workers.
The company increased access to distribution and fulfillment centres, which allowed for faster delivery of products to customers.
Walmart, prior to Jet.com’s acquisition, was not known as luxury or high-end retailer brand.
Jet.com is a partner with Bloomingdales and other luxury retailers, raising the visibility of Walmart.
Walmart shoppers may be from rural, suburban and family-owned households. Urban dwellers tend to use delivery services more, so this expanded Walmart into that market, too.
Jet.com’s Success Factors:
Jet.com has a unique feature: Its “realtime pricing algorithm,” which ensures customers receive the most exact prices.
Additional factors that affect item pricing include location, payment method, purchase on a partnering site, as well as the type of product purchased.
One example is that if you buy several items from the same distributor, they are cheaper than if you bought them separately.
Likewise, if the shopper made their purchase with a debit card instead of a credit card with more expensive processing fees, they would receive a discount.
The Jet Anywhere Program allows shoppers to spend money in partnering stores and get Jet Cash, which they can use for future purchases on the site.
To top it all, some of these partnering locations were:
What caused Walmart to end its relationship with Jet.com
Shockingly, just as quickly as Walmart decided to purchase Jet.com, it terminated the relationship in around three years.
Simply put, Walmart ended its relationship with Jet.com because it wasn’t profitable for Walmart.
Walmart paid $3 billion to acquire a 30% interest in Jet.com. But, by June 2017, the stake had fallen to just $1 billion.
Walmart also wanted to diversify its offerings and find more success on other sites such as Modcloth or Bonobos, both owned by Walmart.
Walmart observed that Jet.com was still having difficulty competing against Amazon when it comes to online grocery shopping.
Additionally, after displaying links to other websites as if it was partnering sites, Jet found itself in hot water with some significant businesses.
Jet.com did not remove the business links requested by customers, but the image damage was already done.
Does Jet.com Still Exist, And What Company Owns It Now?
Although the website went down in June 2020 with no warning from Walmart, it will still direct you to Walmart.com if Jet.com was entered into your browser search.
Walmart also retains the domain name, and therefore the company. However, it looks like Walmart’s finally decided it’s not going to reimagine the brand in any way.
Jet.com employees lost their jobs when the warehouses and website were closed.
Jet.com currently employs approximately 5,000 employees as of closing
Walmart workers can find new jobs and are transferred to other places, which is a good thing.
Walmart, however, decided to cut all ties with Simon Belsham (President of Jet.com), and allowed him to resign after Walmart bought the company.
See our Related Guides to learn more: Walmart’s profit per minute, Walmart companies and Walton family net wealth.
While many people consider Walmart’s investment with Jet.com to be a failure of some sort, others think otherwise.
The investment was successful because Walmart had the ability to attract talented people who were familiar with ecommerce. Walmart was able to attract a younger, wealther shopping customer base.
Finally, the brand image increased because Walmart became associated with several high-end clothing brands through Jet.com’s partnerships.
Walmart Has Jets?
To help Amazon’s rapid rise, Walmart bought Jet.com in 2016 for $3.3 Billion. The company stated Tuesday that it will close the website. Walmart CEO Doug McMillon credited the acquisition for “jump-starting the progress we have made the last few years” with e-commerce.May 19, 2020
Why did Walmart discontinue Jet Com
Walmart said it’s discontinuing Jet “due to continued strength of the Walmart.com brand” and said Jet had helped it build up its e-commerce business.May 19, 2020
Did Walmart Lose Money On Jet Com?
Jet.com has been criticized by critics as a loss-making venture. May 20, 2020
Jet Com’s Ownership:
Walmart purchased Jet.com on August 8th 2016 at $3.3 billion (up to $300m in stock, cash and $3 billion in cash).
.Jet.Com In 2022 (What It Is, Does Walmart Own It + More)
