The American company Walmart has been trying to compete against the great leaders of the technology market for some time. To his attempt to fight against Apple Pay launching his own method of payment, Walmart Pay, now we must add his new objective: Amazon. And is that just confirmed the purchase of Jet.com by Walmart, which means a great movement in the online market.
Walmart has acquired Jet.com in exchange for $ 3 billion in cash and $ 300 million worth of shares, according to El País. The US company has done so with a startup of just 2 years of life that has achieved great achievements during this time. However, for the agreement to be closed, approval by the regulatory authorities is still necessary.
Jet.com, created by Marc Lore, has become one of the great tricks in e-commerce thanks to its low prices. After the sale to Walmart, Lore manages to position itself as head of the American giant distributor.
On the other hand, Walmart has issued a statement explaining the details of this acquisition, with the aim also to specify that both companies will remain independent. However, “they will leverage the innovative technology solutions of both companies to develop new offerings that help customers save time and money.”
With this new purchase Walmart ensures a great place in the online shopping market, led untouchably by Amazon. Although Walmart is the world’s largest retailer, its status in e-commerce was not good. Now, with this purchase they will try to improve their position and deal with Amazon, something that seems very difficult.
To understand the great difference that currently exists between the two companies, only one detail is needed: Walmart’s e-commerce volume amounts to 14 billion dollars, while Amazon’s volume goes up to 100 billion dollars.
This business, however, is very risky for critics, who stress the fact that Jet.com only has 2 years of development. Do you think Walmart risks competing against Amazon with such a young company?