In 2016, Walmart decided to buy Jet.com for $3.3 billion but Jet.com operations continued as usual. During this time, Walmart incorporated all the company’s clever marketing strategies, and in 2020 decided to shut down all of Jet’s previously existing online stores. Hence, there was no more Jet as users had to start shopping with Walmart instead.
Understanding Jet.com
Why Else Did Walmart Buy Jet.com?
A Similar Incident Of Walmart’s Purchase Of Flipkart
In 2018, Walmart also bought 77% of India’s e-commerce company, Flipkart, making this the biggest e-commerce deal of the century in the world. This deal speaks a lot about Walmart’s future intentions. In 2018, Flipkart was India’s market chief. With India’s online retail business projected to grow 141% from 2017 to 2021, meaning more than $50 billion, Walmart saw an advantage worth pursuing. A way to gather a huge number of future clients.
It’s obvious that Walmart’s intention all along, after terminating Jet.com, was to eliminate the growing competitor. But initially, leaving Marc Lore to be in charge of Walmart’s online selling, meant that the company was greatly benefiting from his and Jet’s marketing tactics that had made the company a successful endeavor in its early years. The second and very important reason was that Walmart had an eye on Jet’s millennial customers who are low-income earners and thus always on the lookout for cheaper products. With Jet’s “real-time pricing algorithm” cheaper pricing was a given for Walmart.
