Its Rise, Acquisition, and Shutdown

Ronald M. Bieber

Do you know that Walmart heavily invested in its e-commerce future in 2016? was purchased for $3.3 billion, expecting it to help the company reach affluent and young people living in urban areas. However, at the end of 2020, Walmart finally shut down the website.

The brand was launched as a membership-only retail website. Members were offered large discounts and guaranteed next-day delivery. The initial focus of was on airline tickets, but the company gradually branched out to sell food, electronics, and furniture. Later on, Jet, a marketplace allowing companies to sell their products to other companies, was also introduced by the corporation.

Table Of Contents

Overview of

The American online retailer, was located in Hoboken, New Jersey. Marc Lore, its founder, had been previously selling Diapers to After coming up with the idea, he teamed up with Mike Hanrahan and Nate Faust to create the company in 2014. The investors were able to acquire $820 million through four funding rounds from investors like Alibaba Group, GV, Bain Capital Ventures, Goldman Sachs, Fidelity, and Accel Partners. After everything was set, the site went live in July 2015. business strategy

Success is all based on strategy. implemented a "real-time pricing algorithm" which determined "the genuine marginal cost of sending a product to a client." Here is how it worked:

The Rise of

Do you know that people knew about before it was initially launched? To get the word out, company developed a program called Jet Insider which marketed the website long before it went live. Some of the special features include:

Why Did Walmart Purchase

In 2016, Walmart made the risky move of acquiring to better its chances of competing with Amazon. It needed to raise its presence as a key shopping destination for online shopping as well as its existing brick-and-mortar enterprises. To boost its online capability, it opted to hire Marc Lore, an online diaper supplier to Amazon, to oversee operations for and Walmart's e-commerce divisions.

This seemed to be a plus to Walmart's business. As was a central location for online food shopping, Walmart saw an opportunity to expand its forays into international markets. To compete with Amazon's grocery business, Walmart needed to acquire for its online grocery services.

What Did Walmart Acquire After the Acquisition of

After, Walmart acquired other digital natives like clothing startup, Bonobos and created new ones like the Mattress Firm. It also launched Express Delivery, a new store-to-door service that delivered products to customers' homes in less than two hours. The company has expanded its curbside pickup and home delivery operations.

However, the money put into expanding e-commerce did have some benefits. Online purchases did increase by 37%. Annually. During the pandemic, they increased by 74% in the first quarter. The pandemic drew in new consumers interested in trying the company's online services daily. However, Amazon remained a formidable competitor, and Walmart's online storefront struggled to be profitable. Selling more than just groceries online proved difficult.

What Caused Walmart to Close

Walmart had trouble turning into a profitable business after acquiring it. Thus, chose to shut it down in 2020. Here is the main challenge faced:

High competition Amazon in the grocery market sent out of business. No matter how much, expanded its customer base, it was no match for Amazon's massive size and devoted following. The decision to shut down indicates how challenging it is for a huge retailer like Walmart to compete with Amazon in the e-commerce industry.

Did Walmart Suffer Losses After the Acquisition of

To date, Walmart has not provided separate income and loss figures in online sales. Experts speculated that Walmart's online business would lose roughly $1 billion in the first year. But as per the Wall Street Journal, Walmart probably lost over $2 billion, double the previous

What's the Future of Walmart After Shutting Down

Meanwhile, Walmart has been working to develop and grow its strengths, such as a two-hour delivery service. To increase its online sales and decrease losses, Walmart is moving away from an Amazon-like model of fulfillment warehouses but instead relies on its massive shops as both marketing and distribution centers.

What Is the Difference Between Jet.Com and Walmart?

Unlike, which operates solely online, Walmart has physical stores where customers can walk in and buy products. The online retailer requires users to sign up for a paid membership to access features like member-only sales and expedited shipping, similar to Amazon Prime.

What Happened to the Employees after It Was Closed?

The Company had about 5,000 employees at the close of business. Walmart relocated the employees to its departments and stores. However, after Walmart's closure of, the business opted to end its relations with the company's president, Simon Belsham, and he was permitted to resign.


Walmart's purchase of may be considered a mistake, but the company may have had a return on its investment since it was able to hire experts in the field of electronic commerce. Even after letting go of, Walmart is committed to expanding its online business.

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