Walmart is shutting down Jet after spending $3 billion on it in 2016

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  • POSTED ON: May 20, 2020

Jet.com, the online shopping site that was launched in 2016 to challenge Amazon, is finally shutting down. Let’s face it; Walmart tried, but it couldn’t beat its rival because Amazon is just that good.

The reasoning behind this decision is “continued strength of the Walmart.com brand.” The company believes that the jet acquisition in 2016 was “critical to accelerating our omni strategy.However, we are all aware of the poor numbers. Walmart lost approximately $2 billion last year with it’s online e-commerce operations. Hence, the company is regaining its focus and giving attention to the retail locations as that’s where Walmart has the edge over Amazon.  

Since then, the company has observed a huge boost in online spending. Its e-commerce business is up to 74% compared to Q1 2019. The company explains there’s a spike in demand for grocery pickup and delivery services with the pandemic in order.

You can’t erase the writing on the wall for Jet because, despite the huge investment, Walmart couldn’t match up to Amazon.

So, what do we learn here? Well, optimize your strengths.

Updated May 20, 2020
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