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Nate Faust, svp/U.S. e-commerce supply chain, Walmart, stated that delivery is a top and increasingly important consideration for today's online shoppers, demanding speed, flexibility, and reliability.

Parcel is based in New York City and was acquired for less than $10 million, according to a report from Recode.

The acquisition of Parcel signals a desire to boost that practice so that Walmart can better compete with other same-day delivery services, like Amazon's Prime Now.

"We plan to leverage Parcel for last mile delivery to customers in New York City-including same-day delivery-for both general merchandise as well as fresh and frozen groceries from Walmart and Jet", the company said in a blog, referring also to e-commerce retailer Jet.com which it bought previous year for $3.3 billion.

Amazon's takeover of Whole Foods in June signaled its intention to become a player in the $626 billion United States grocery market dominated by Walmart. Its current clients - who it will continue to serve, Walmart said - include meal kit companies like Chef'd and Purple Carrot.

"Born and bred in New York City, Parcel has developed unique expertise delivering to customers in a distinctly challenging and essential market", Faust said. That goes even more so for a densely populated metro area like NY, the top market for Walmart's website and its Jet.com subsidiary but also one of the toughest to navigate.

This year, Walmart acquired online men's clothing brand Bonobos for $310 million, and indie and vintage women's clothing brand ModCloth for an estimated $50 million to 75 million. Parcel receives packages from a variety of partners at its Brooklyn warehouse and uses routing algorithms and a fleet of vans driven by employees to offer same-day, overnight and two-hour package delivery windows.

Parcel's seven full-time employees and 45 to 50 part-time workers will join the Walmart team, Kaplan told CNN Tech.

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