Home COVID-19 Hoboken-Based Company Jet to Be Discontinued by Walmart This Year

Hoboken-Based Company Jet to Be Discontinued by Walmart This Year

by Arielle Witter
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Every single day there seems to be a brand new headline regarding the Coronavirus. Unfortunately, this time around, it’s not the most heartwarming of news stories. Walmart has announced that its online marketplace, Jet.com, will be discontinued, phasing completely into Walmart.com {which it has been for several years, since its acquisition}. Now, you might be asking yourself what this has to do with Hoboken, but it just so happens that Jet has its HQ right here in the Mile Square at 221 River Street, employing dozens if not hundreds of local residents. 

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The Situation

First — the good news directly from Jet employees: It appears that the change is more nominal, and everyone is keeping their jobs at this time — as well as the office space in Hoboken.

But, the news of Jet’s discontinuation has come to light after Walmart released its quarterly report for this year. In the report, which can be found here, an official press release reads that, “Due to continued strength of the Walmart.com brand, the company will discontinue Jet.com. The acquisition of Jet.com nearly four years ago was critical to accelerating our omni strategy.’

Jet, which is an online market place as state previously, was acquired by Walmart for $3 billion back in 2016 when the company was only in fruition for one year as a startup, according to Tech Crunch.

According to CNBCthose investments have proved critical to Walmart’s e-commerce growth, which has accelerated by 37% in the first quarter. During the pandemic, sales have increased by 74%. The CEO of Walmart also released a statement about employment of Jet employees, most of which are already integrated into Walmart, saying he doesn’t “anticipate a significant accounting charge due to this decision,” meaning most employees are safe from layoffs and have been moved to roles tied to the Walmart brand.

Per many employees who work locally in Hoboken, this doesn’t affect them — as they’ve been working for Walmart’s brand for several years. But in actuality, this deal will be done by the end of the year, and the Jet website will be phased.

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About Jet

If you’re not familiar, Jet is an online e-commerce company with its HQ right here in Hoboken. “Jet is a shopping site dedicated to saving you more money. Everyday low prices are just the start, because our real-time savings engine gives you the power to make prices drop even lower as you shop,” its website states.

Their biggest competitor is Amazon after being acquired by Walmart — and is a one-stop-shop for everything you need — including home goods, clothing items, grocery items, and more.

Of course, since it began as a startup, Jet comes from humble beginnings. It was originally founded by Marc Lore, who has since been promoted to the CEO of Walmart e-commerce, alongside Mike Hanrahan and Nate Faust back in 2014 in the Mile Square.

“Jet introduced radical price innovation in e-commerce by optimizing the underlying economics of online shopping and unbundling the embedded retail costs that drive up price, creating an entirely new business model that works better for both customers and merchants,” Lore had previously written about his company.

Since founding the company and its acquisition by Walmart, Lore was then promoted to being the president + CEO of Walmart e-commerce, according to Vox

Like any major company, Jet has an interesting history. Back in 2018, Vox reported that Jet’s then-president Liza Landsman, who had been in her role for 18 months at the time, was stepping down. She had taken over the role as the company’s president after Lore’s aforementioned promotion.

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Of course, this Jet news is pretty major, considering it’s a large tech company with roots right here in the Mile Square. Luckily, it looks like not much will be effected on the employees front locally, just the name change.

Got a news tip? Let us know — email us at hello@hobokengirl.com! We appreciate it.

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