Walmart wants a partner for Jetblack
Walmart last year invested in a Jetblack, a service where users can buy anything but food via text, now it reportedly wants to jettison part of the money-losing service.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WMT | WALMART INC. | 59.27 | -0.38 | -0.64% |
| MSFT | MICROSOFT CORP. | 404.33 | -7.51 | -1.82% |
| UPS | UNITED PARCEL SERVICE INC. | 142.74 | +0.49 | +0.34% |
The retail giant reached out to investors and venture-capital firms, including Microsoft, United Parcel Service and Enterprise Associates, according to the Wall Street Journal. In hopes of securing a partner to help run Jetblack which has been losing $15,000 per member annually.
Walmart declined to comment on the reports when reached by FOX Business.
Walmart bought the New York City-based service in 2016 from Jet.com for $3.3 billion. It touted it as a possible avenue for growth in the fast-delivery market. The app allows customers to order various products through text and have them shipped to their home or office. But the exorbitant price of New York retail has been bad for business.
Jetblack promises users the lowest available price on items but often has to buy those items at a higher price from a local store in order to meet its quick-delivery expectations. Some members of the service, the Journal reported, are paying as much as $600 annually.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Walmart has been shopping Jetblack to potential investors since the summer and is expected to retain a stake in the service if a deal is reached, the WSJ reported.
Shares of Walmart have gained 24 percent this year.