Walmart is shutting down its personal shopping service, Jet black, on February 21, after struggling to find adoption or additional investment. The service had allowed New York-area customers to text message orders for home delivery. According to its website, Jet black will now no longer accept new orders and will refund its customers their most recent $50 monthly membership fee.
The retailer is trying to spin the shutdown as a learning experience, noting that part of the initiative was to test and build technology that could eventually be applied to other parts of Walmart’s business. In Jet black’s case, Walmart learned about conversational commerce and how customers could use text messages to shop.
But according to an earlier report from The Wall Street Journal, Walmart had discussed investment with several potential partners, including Microsoft and VC firm NEA. Those talks didn’t pan out. Jet black, the report said, had gained fewer than 1,000 customers and remained a money-losing business.
To be fair, a high-end shopping service was largely an experimental concept for Walmart to dabble in, and it’s not surprising that it didn’t take off. After all, the Walmart brand today is aligned with cost savings and mainstream America, not necessarily …read more