"But I see even more upside for our own same-day deliveries".
The financial terms of the deal were not disclosed.
The world's largest retailer plans to use the business to offer free, same-day delivery in New York City - the most populous city in the U.S. - as it continues to push into e-commerce to compete with Amazon.
And Walmart, which has been on an acquisition rampage to ramp up its online operations, is now hot on Amazon's heels in the fulfillment arena.
"The traffic in a place like New York City tends to be a pretty big obstacle that we've done an fantastic job of optimizing for", Parcel CEO and founder Jesse Kaplan said. This acquisition allows Walmart to continue testing ways to offer fast delivery while lowering operating costs.
Walmart is looking at launching a same-day delivery service, but it would be limited to New York City. The company has partnerships with several meal kit, grocery and e-commerce companies. Lore moved into his current role after Wal-Mart completed the $3.3 billion acquisition of online retailer Jet.com in September 2016.
Walmart and Parcel both declined to reveal the acquisition price, but a source told Recode it was less than $10 million. "Customers' expectations around delivery and what is possible have changed significantly in the past couple of years", Nate Faust, senior vice president, Walmart U.S. e-commerce Supply Chain, said via a company blog post.
Wal-Mart now offers grocery pick-up service at hundreds of stores nationwide and is testing same-day delivery at a handful of stores.
In addition, Wal-Mart is using store employees to deliver packages to customers on their way home from work shifts. Further innovations range from associate delivery to in-building and in-fridge delivery with Latch and August Home.