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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. Many are unsure if Walmart has any ownership. And, if so, is Jet.com still profitable?
What Was Jet.com?
Jet.com was founded by Marc Lore, creator of Diapers.com. The website competed with Amazon Fresh and reached younger, better-off shoppers before Walmart acquired it to grow its ecommerce department. However, the partnership had dissolved within three years, and the website closed for good in 2020.
Jet.com – What Did You Do?
Jet.com was founded in 1999 by Marc Lore of Diapers.com. It used to be an American ecommerce firm that sold groceries online.
It did have a marketplace that was similar to Amazon Fresh Marketplace. You could not get discounts if you had a premium membership, but this was different from Amazon.
Instead of it offering incentives to purchase more items, you will see the app offer to add additional items to your virtual shopping bag. Also, all options are clearly displayed during the checkout process.
Jet.com could also offer incentives such as:
How Much Does A Jet.com Member Cost?
The founders initially wanted to offer shoppers free access for 90 days to check out the website. The members would have to pay $50 an annually.
However, that plan was scrapped early in the planning, and Jet.com didn’t charge a fee.
However, the decision led to early failures in the company prior to Walmart intervention in 2016.
What Motivated Walmart to Purchase Jet.com
Walmart bought 30% of Jet.com in October 2016 for $3B and became the largest shareholder.
Walmart’s shares in October 2016 were valued at $3 billion, but they had fallen to $1 billion by June 2017.
Walmart decided to buy Jet.com, in part because Amazon was expanding too much into grocery. It didn’t want Walmart losing its market share.
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 bought Jet.com in order to combine with their online grocery service. Both could remain competitive with Amazon’s grocery store.
Walmart gained another advantage by purchasing Jet.com. It also got some highly skilled workers.
The company gained access to more distribution and fulfillment centers that made it much easier and quicker to ship products to customers.
Before the acquisition of Jet.com, Walmart was not known as a luxury or high-end retail 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. Walmart was able to expand its reach into this market because urban dwellers are more inclined to use delivery services.
What Features Did Jet.com Have That Made It Successful?
Jet.com’s “real-time pricing algorithm” is a key feature, which provides customers with the best prices.
Additionally, item pricing is based on variables like location, payment type, and purchase from a partnering 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.
A similar discount would be available if the customer made their purchase using a debit or credit card, which has more costly processing fees.
Shoppers can also earn Jet Cash through the Jet Anywhere Program. This money could be used to buy items from the website.
Additionally, there were some partnering places:
Why was Walmart unable to maintain a relationship with Jet.com?
Surprisingly enough, Walmart was able to terminate the relationship within three years of Jet.com’s purchase.
Walmart ended their relationship with Jet.com, simply because Jet.com wasn’t profitable.
Walmart, for example, had to shell out $3 billion for Jet.com’s 30% stake, however, the stake was only worth $1 billion by June 2017.
Walmart decided to discontinue the site because it wanted to diversify, and had more success with Modcloth and Bonobos (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 was able to remove links to the businesses who requested it, but its reputation had already been damaged.
Jet.com Is Still Available? What Company is It Owned Now?
Even though the website was shut down abruptly by Walmart in June 2020, it redirects you to Walmart’s website if Jet.com has been entered into your search engines.
This means Walmart retains ownership both of the domain and the company. Walmart may have finally decided to not reimagine their brand.
Jet.com: What happened to the Jet.com workers when their warehouses closed?
As of closing, there were approximately 5,000 Jet.com workers employed by Jet.com.
Fortunately, most workers were able to find other jobs within Walmart and were transferred to other sites.
Walmart, however, decided to cut all ties with Simon Belsham (President of Jet.com), and allowed him to resign after Walmart bought 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.
While many people consider Walmart’s investment with Jet.com to be a failure of some sort, others think otherwise.
The first was that Walmart could attract talent who knew the intricacies of e-commerce. Walmart also attracted younger and more wealthy shoppers.
Finally, Walmart associated itself with several luxury clothing brands through Jet.com partnership.
Walmart has Jet
Walmart bought Jet.com from Amazon for $3.3Billion in 2016, to protect itself against Amazon’s fast rise. According to the company, it is discontinuing its Jet.com 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 did Walmart discontinue Jet Com
Walmart stated that Jet will be discontinued “due to the continued strength of Walmart.com” and claimed Jet helped build its ecommerce business. May 19, 2020
Did Walmart Lose Money On Jet Com?
Critics have contended, however, that Jet.com was only a money-losing venture for Walmart. Walmart released its quarterly earnings on Tuesday. It revealed that its U.S. ecommerce sales increased by 74% and that same-store sales rose by 10% during the first quarter. May 20, 2020
Jet Com: What company owns it?
The acquisition of Jet.com by Walmart was officially announced August 8, 2016. It included $3.3 Billion in cash and stock up to $300 Million. Stock payments were made over time to select individuals and founders.
.Jet.Com In 2022 (What It Is, Does Walmart Own It + More)