Walmart’s Amazon killer and a real estate startup are wooing NYC landlords

Retail behemoth is trying to reduce pain points in online shopping

New York /
Jul.July 17, 2017 09:02 AM

This week in the clash of retail titans Walmart and Amazon: Walmart’s online shopping platform Jet.com is teaming up with real estate startup Latch to make it easier for tenants in non-doorman buildings to accept packages ordered online.

The partners are teaming up to test out a program that will install Latch’s keyless entry system free of charge in lobbies at 1,000 buildings, the Wall Street Journal reported. As The Real Deal previously reported, landlords in New York are struggling to keep up with tenants’ online shopping addictions.

The hardware and software allows entry into buildings via a passcode, smart phone or smart card, and allows delivery personnel to use temporary passcodes created with Jet.com to get into lobbies and drop off online purchases.

“People are ordering so many things online,” said Latch co-founder and chief executive Luke Schoenfelder. “Access is holding that back because you need to be home in order for that to happen.”

The pilot program will initially focus on Brooklyn and Manhattan, and could reach 100,000 people. The buildings that will participate in the program have not yet been identified, though Sterling VC, the venture capital arm of the Wilpon and Katz families, is an investor in Latch and is open to the idea.

“It’s nice to test it out at a scale like this with a partner of Wal-Mart’s size and ability,” Sterling VC partner Farzam Kamel said.

Walmart has long tried, and failed, to open a location in New York City but faced pushback from lawmakers and community groups. In June it announced it was buying the men’s fashion retailer Bonobos in Nomad for $310 million.

The news came on the same day that it was reported that Amazon was buying Whole Foods for $13 billion. Both deals represent a major shakeup in a retail sector that is already in a state of transition as online shopping habits evolve. [WSJ]Rich Bockmann


Related Articles

arrow_forward_ios
172 Cedar Street in East Hampton LI
(Google Maps)
Huge Hamptons equestrian estate sold for $22M
Huge Hamptons equestrian estate sold for $22M
Molly Ringwald and Alexi Lubomirski (Getty Images, Credit Cristina Cote of The Cote Team)
Molly Ringwald’s former East Village townhouse hits market
Molly Ringwald’s former East Village townhouse hits market
27 Vandam Street, Hudson Square (Compass, iStock, Illustration by Kevin Cifuentes for The Real Deal)
Hudson Square townhouse in contract at $15M could break area record
Hudson Square townhouse in contract at $15M could break area record
Silverback's Josh Schuster and Hopson's Chu Mang Yee with rendering of the project at 131-141 East 47th Street (LinkedIn, Getty, Ismael Leyva Architects)
Hopson nabs $156M for Midtown tower, agrees to part ways with Silverback
Hopson nabs $156M for Midtown tower, agrees to part ways with Silverback
Mayor of New York City Eric Adams (iStock/Adams via Paul Dilakian)
Mayor proposes restoring unstaffed voucher discrimination unit
Mayor proposes restoring unstaffed voucher discrimination unit
Neil Patrick Harris and David Burtka in front of 2036 Fifth Avenue (Getty Images, Google Maps)
Neil Patrick Harris sells Harlem brownstone in neighborhood record
Neil Patrick Harris sells Harlem brownstone in neighborhood record
Darien First Selectman Monica McNally and Great Island in Darien, Connecticut (Darien Republicans, Google Maps)
Fairfield County town nears private island purchase for over $100M
Fairfield County town nears private island purchase for over $100M
From left: Oaktree Capital Management co-chairman Howard Mark; Helmut Lang; Hess CEO John Hess; and 8 Tyson Lane in East Hampton, Long Island (Getty Images, Oaktree Capital Management, Google Maps, Hess)
Helmut Lang finally sells East Hampton estate
Helmut Lang finally sells East Hampton estate
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...