Jet.Com
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 online retailer that offers lower prices on grocery products. However, there are many questions as to whether Walmart actually owns Jet.com. And, if so, is Jet.com still profitable?
Jet.com: What was it?
Jet.com was established by Marc Lore who is the creator of Diapers.com. Jet.com competed against Amazon Fresh. Walmart later purchased Jet.com in order to improve its ecommerce department, rival Amazon Fresh, reach younger and more affluent buyers, and expand its ecommerce business. The partnership was disbanded within three years and Jet.com closed its doors permanently in 2020.
Jet.com: How did it work?
Jet.com, founded by Marc Lore (founder of Diapers.com), was once an American online e-commerce company that specialized in selling grocery items.
It had an interface that looked a lot like Amazon Fresh Marketplace. Unlike Amazon, discounts were not tied to your premium membership.
Instead of offering you incentive to shop more, you can add items to the virtual shopping cart. All options will be clearly shown during checkout.
Jet.com could also offer incentives such as:
How much did a jet.com membership cost?
Initial plans were to allow shoppers to try the website for free during a 90 day trial. Then, the annual fee would be $50.
Jet.com charged no fees, so that plan was abandoned early on in the process.
This decision, however, was one reason for early company failures that led to Walmart’s intervention in 2016.
Why Did Walmart 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 in October 2016 were valued at $3 billion, but they had fallen to $1 billion by June 2017.
Walmart acquired Jet.com because it was concerned that Amazon would grow too far in grocery, leaving Walmart behind.
Since Jet.com is an online grocery hub, Walmart felt this was a way to grow like how Walmart had expanded into new markets in the past.
Walmart purchased Jet.com as a way to revitalize the business, which had been in financial trouble since its acquisition.
Walmart’s acquisition of Jet.com meant that the online grocery company could be merged with Jet.com. This would allow both to remain competitive against Amazon.
Walmart’s acquisition of Jet.com brought it some amazing workers.
Also, the company expanded access to distribution and fulfillment centers which made it easier and faster to get products to customers.
Walmart wasn’t known for being a high-end or luxury brand before Jet.com was acquired.
On the other hand, Jet.com has partnerships with luxury retail stores like Bloomingdales, which raised how the public viewed 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: What features made it successful?
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.
A user might buy a couple of products from one distributor center and they will cost less than if they came from two.
Also, the buyer would get a discount if they used a debit instead of a card with higher processing fees.
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.
A few of the partner locations included, however:
Why was Walmart unable to maintain a relationship with Jet.com?
Shockingly, just as quickly as Walmart decided to purchase Jet.com, it terminated the relationship in around three years.
Walmart ended their relationship with Jet.com, simply because Jet.com wasn’t profitable.
For example, Walmart had to pay $3 billion for a 30% stake in Jet.com, but by June 2017, that stake was worth only $1 billion.
Also, another reason for the discontinuation is that Walmart wanted to diversify and found more success with other e-commerce sites like Bonobos or Modcloth, which Walmart owns.
Walmart discovered that Jet.com still had difficulty competing in online grocery sales with Amazon.
Jet also got in trouble for displaying links to websites that were not partnering with it, and was eventually forced out of business.
Jet.com has now removed links to companies that had requested to be removed, however, Jet.com’s image is already damaged.
Is Jet.com still around? And what company owns it now?
Although the website abruptly shut down without a heads up from Walmart in June of 2020, it still redirects you to the Walmart website if you type Jet.com into your search engine.
Walmart is still the owner of both the domain name and company. However, it looks like Walmart’s finally decided it’s not going to reimagine the brand in any way.
How did the website and warehouses close?
Jet.com employees were estimated to number around 5,000 as of closing
Walmart workers can find new jobs and are transferred to other places, which is a good thing.
Walmart decided, however that Jet.com’s president Simon Belsham would be fired and was allowed to stand down following acquisition of the company.
Learn more about our similar guides, including how Walmart pays per minute, what companies Walmart owns, and the net worth of the Walton Family.
Although Walmart’s investment in Jet.com is seen as a failure by some, others see it differently.
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, Walmart associated itself with several luxury clothing brands through Jet.com partnership.
Walmart owns Jet
To help Amazon’s rapid rise, Walmart bought Jet.com in 2016 for $3.3 Billion. According to the company, it is discontinuing its Jet.com website. Doug McMillon from Walmart said the acquisition was responsible for “jumping-starting our progress over the last few years in e-commerce.” May 19, 2020
What is the reason Walmart discontinued 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, according to critics, was a money-losing venture that Walmart had. … On Tuesday, Walmart reported quarterly earnings, revealing that its e-commerce sales in the U.S. shot up by 74%, and same-store sales grew by 10% in the fiscal first quarter.May 20, 2020
Jet Com: What company owns it?
It was announced on August 8, 2016, that Walmart would acquire Jet.com for $3.3 billion ($3 billion in cash and up to $300 million in stock paid out over time to the founders and other selected individuals at the company).
.Jet.Com In 2022 (What It Is, Does Walmart Own It + More)