Nate Faust, senior vice president of logistics for Walmart U.S. e-commerce, is taking over day-to-day operations of Jetblack as chief executive officer of the text-based concierge business, succeeding Jenny Fleiss, who plans to focus her entrepreneurial expertise in new areas of the retail and digital giant’s business, a Walmart spokeswoman said.
Faust was a cofounder, along with Marc Lore and Mike Hanrahan, of Jet.com, which Walmart in 2016 acquired for $3.3 billion. Prior to launching Jet.com, Faust, Lore and Hanrahan launched Quidsi, the parent company of Diapers.com, Soap.com and Wag.com.
According to reports, Jetblack is losing $10,000 to $15,000 per customer, and Walmart might be looking to unload the service. Walmart has said that Jetblack isn’t being sold, and is not for sale. The company declined to comment on speculation that Jetblack may be spun off as its own entity.
Fleiss, who led Jetblack from its inception a year ago, isn’t leaving Walmart; rather, she’s transitioning away from leading Jetblack’s day-to-day business operations to focus her entrepreneurial expertise on new areas of the company’s business.
“She’ll continue to support Jetblack as an adviser, spokesperson and ambassador, and will join the Walmart customer organization as an adviser, reporting to chief customer officer Janey Whiteside,” the spokeswoman said.
“Today, I passed the baton to one of my career inspirations as we take this Jetblack team to its next stage of growth,” Fleiss wrote on her Instagram account. “I met Nate Faust when I was learning about logistics for Rent the Runway 10 years ago.” Fleiss cofounded Rent the Runway with her Harvard Business School classmate Jennifer Hyman.
With Walmart U.S. e-commerce estimated to lose $1 billion this year on $21 billion to $22 billion in gross merchandise value, the Bentonville, Ark.-based behemoth has begun selling assets. Earlier this month, Walmart said that it is selling Modcloth, one of the digital-native brands it picked up after acquiring Jet.com, to Go Global Retail.