In 2016 Walmart shocked the world when it bought a hot e-commerce startup, Jet.com in a $3.3 billon deal. Walmart CEO hailed it as a new era for Walmart but many were confused as to how Walmart.com and Jet.com could work together. 

Over the next three years, it was something of a tale of two websites. Walmart.com surged, adding millions of items to its selection and growing e-commerce sales 40% in 2018. At the same time, Jet was refocused on serving a much smaller niche: the urban millennial consumer, which Walmart has historically found hard to reach. The site subsequently saw falling traffic and sales as it tightened its focus.

Now, the rest of Jet’s retail, marketing, technology, analytics, product, and other teams are being integrated into the larger Walmart teams, and the Jet president role will be eliminated, Marc Lore, president and CEO of Walmart e-commerce US, wrote in a blog post. Jet.com will still be around. The brand will be kept up, and it will still work on partnerships with brands like Nike.

Walmart’s and Jet’s teams have been working together very tightly already, and Jet technology and talent has played a huge role in the online success Walmart has experienced.

Jet cofounder, Marc Lore moved over to head Walmart’s e-commerce when the acquisition closed, and since then he has overseen a number of success stories at Walmart, from growth of Walmart.com sales to the runaway success of grocery pickup.

Two other Jet cofounders are still with Walmart in prominent roles. Nathan Faust, formerly Jet’s COO, heads up supply chain for Walmart US e-commerce, and Mike Hanrahan, who was Jet’s CTO, is now the head of Walmart’s Intelligent Retail Lab, the tech-infused Walmart store in Long Island, New York.

Jet’s team has also functioned as a launching pad for innovations that have enabled Walmart to better compete with Amazon, including two-day shipping. “Our combined supply chain team has retooled fulfillment centers and mirrored inventory,” Lore wrote in the blog post announcing the newest change. “This initially led to two-day free shipping, and more recently, free NextDay Delivery.”

Source: Markets Insider