Walmart bought hot e-commerce startup Jet.com in a $3.3 billion deal in 2016. Now, Walmart is folding all Jet employees in to the rest of its e-commerce operations, while retaining the Jet brand. While Jet has struggled to thrive in the niche Walmart wanted it to fill, the acquisition has still played a fundamental role in the strong growth of Walmart.com. Visit Business Insider’s homepage for more stories.
Walmart shocked the world when it bought hot e-commerce startup Jet.com in a $3.3 billion deal in 2016.
CEO Doug McMillon hailed it as a new era for Walmart.
“Together, both Jet.com and Walmart.com will be able to leverage each other’s assets to grow the ways we serve customers,” he wrote in a Walmart blog post as the deal closed.
Some still scratched their heads. One analyst joked that Walmart was “ lighting money on fire.“
After all, Walmart already had a website that was directed at a mass population. How would Walmart.com and Jet.com work together? Would they inevitably clash?
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.
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