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 offers grocery products at lower prices online. However, many people have questions about Walmart’s ownership of the company. Is Jet.com still financially viable?
Jet.com: Was It Really?
Jet.com, founded by Marc Lore (creator of Diapers.com), was a promising ecommerce site that rivaled Amazon Fresh. Before Walmart bought the website, it expanded its ecommerce department and competed with Amazon. It also aimed to reach younger, wealthier shoppers. However, the partnership had dissolved within three years, and the website closed for good in 2020.
Jet.com: How did it work?
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. The discounts weren’t tied to premium memberships like Amazon.
Instead, as you add items to your virtual shopping cart, the app would offer you incentives to purchase more. During checkout, you will see all your options.
Further, Jet.com incentives could be things like:
How much does a membership to Jet.com cost?
In the beginning, founders hoped to give shoppers a 90-day free trial that would allow them to explore the site. They would then have to pay $50 annually for membership.
Jet.com did not charge any fees for this plan.
Despite this, it was one of many contributing factors to the early failures of the company before Walmart intervened.
Walmart bought Jet.com Why?
Walmart, which bought 30% for $3.25 billion of Jet.com’s stock in October 2016, became Jet.com’s largest shareholder.
Walmart shares had a value of $3 billion in October 2016 but were only worth $1 billion by June 2017.
Walmart acquired Jet.com because it was concerned that Amazon would grow too far in grocery, leaving Walmart behind.
Walmart felt Jet.com would allow them to grow in a similar way that Walmart did previously.
Walmart also purchased Jet.com to help revive the struggling company.
Walmart purchased Jet.com for its online grocery delivery service to ensure that they could both remain competitive with Amazon.
Walmart’s acquisition of Jet.com brought it some amazing workers.
The company also expanded its access to fulfillment and distribution centers, making it faster and easier to deliver products to customers.
Walmart, prior to Jet.com’s acquisition, was not known as luxury or high-end retailer brand.
Jet.com, on the other hand has partnerships with high-end retail outlets like Bloomingdales which have raised the perception of Walmart.
Walmart shoppers may be from rural, suburban and family-owned households. Walmart was able to expand its reach into this market because urban dwellers are more inclined to use delivery services.
Jet.com: What features made it successful?
Jet.com’s success is due to its “real time pricing algorithm,” that delivers accurate prices to customers.
Pricing of items is also determined by factors such as location, payment type and purchase made from a partner website.
For example, if a user buys a few items from the same distribution center, they’ll be cheaper than if they were from separate centers.
Also, the buyer would get a discount if they used a debit instead of a card with higher processing fees.
Finally, through the Jet Anywhere Program, shoppers could spend money at partnering locations and earn Jet Cash that they could use to purchase items on the website in the future.
Additionally, there were some partnering places:
Why did Walmart end its partnership with Jet.com
Surprisingly, the partnership was ended in three years, almost as fast as Walmart bought Jet.com.
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.
Likewise, Walmart found that Jet.com continued to have difficulty competing with Amazon for the online grocery business.
Jet got into trouble when it started displaying links on other websites, as if they were partnering sites.
Jet.com has now removed links to companies that had requested to be removed, however, Jet.com’s image is already damaged.
Does Jet.com Still Exist, 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 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.
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 however decided that it would end its relationship with Simon Belsham as president of Jet.com. He was then allowed to leave the position after Walmart purchased the company.
See our Related Guides to learn more: Walmart’s profit per minute, Walmart companies and Walton family net wealth.
Some people see Walmart’s decision to invest in Jet.com as a failure. Others, however, view it differently.
The initial investment proved to be a success because Walmart was able attract people that were well-versed in 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. The company stated Tuesday that it will close the website. Doug McMillon (Walmart CEO) credited the acquisition with “jumpingstarting the progression we have made over the last several years” in ecommerce. May 19, 2020
Why has Walmart stopped Jet Com?
Walmart announced that Jet is being discontinued due to “continued strength of Walmart.com’ and stated Jet had been a key component in building its e-commerce platform. 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:
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)
