Walmart is reportedly in talks to acquire online rival Jet.com, as part of its concerted push to grow its digital operations.
Jet.com, launched in July 2015, has raised more than $500m from venture capital funds. It initially launched with a subscription-based strategy that consisted of discounts and low prices based on pricing formula based on various facts. However, it later moved away from the subscription service.
According to the Wall Street Journal, which cited unnamed sources, a deal could be worth up to $3bn. Acquiring Jet.com would give Walmart access to the former’s innovative pricing software, network of warehouses, and customer data.
Neither group has commented on the report, although if confirmed, it would follow the acquisition of 15 startups in the past five years by Walmart. Despite this, the group’s online business continues to struggle, and in the most recent quarter, reported the slowest rate of growth in the past year. Walmart has also not offered a forecast for when it expects the online unit to report a profit.