Jet Stock has maintained a steady pace since its acquirement by Walmart last year. Just when we thought Jet.com was the end of the story, turns out it was just the start of retail corporate’s ambitions take on Amazon in the online sales.
Walmart’s acquisition of Jet.com for $3.3 billion surely caught the fancy of mainstream media. The decision had eyebrows raising around the business corner because it was daring step to put so much trust into a startup. Not to mention, how it made headlines for making this guy millionaire in three weeks with the entitlement of 100k shares of Jet Stock.
That was a very clever business trick to sign up new Insiders by arranging a contest in which winners would simply win shares of Jet Stock. Eric Martin got away with 100k shares while nine other guys also got lucky. But who really benefited here? The marketing campaign and with the launch of Walmart investment arm, it seems to have been in continuity.
Jet Stock and Store No 8
Store No 8 is Walmart’s latest move to enhance its online sales. “The stand-alone incubator will focus on areas including robots, virtual and augmented reality, and artificial intelligence,” CNBC reported. Helping startups lift off the ground comes with an incredible benefit. Such investment arms not only monitor the success of the future companies but influence their direction as well.
What is the Jet Stock angle here? Consider these facts. The CEO of Jet.com Marc Lore was there side by side with Walmart CEO Doug McMillon during the event. The retailer has also been purchasing goods and cloth related companies to set the stage for online sales. ModCloth, Moosejaw, and Shoebuy come into this picture because now their shop-karts will be merged into one.
Putting Jet.com on the front
On the corporates behalf, McMillon is running some wild but profit-worthy experiments. For instance, empowering the CEOs of the companies Walmart buys to do the same job more vigorously. Lore got to run Jet.com on his own terms. Given that he was one who announced the initiative at the ShopTalk conference in Las Vegas, the subdued partnership strategy clearly worked.
So Jet Stock is the angle because it kickstarted the whole set up, sits in front of the sales point. It serves as a powerful example to motivate entrepreneurs who would bake the bricks of their startup at Store No 8. In fact, this strategy is somewhat equivalent to Elon Musk’s selling SolarCity’s roof shingles by offering SpaceX trip into the orbit via lucky draw.
Let’s summarize everything by getting to the selling points. VR and AR headsets have a great potential proven. AI and robotics are the future. Goods, clothes, and shoes back up projects that are readily deliverable to keep the long Jet Stock ambitions uplifted until the Walmart incubated startups return to feedback over the next few years. Even on the long term, the combined effect of this strategy can’t break the business of Amazon, but it could take away a fair bite.