08/08/2016 04:34 EDT | Updated 08/09/2017 01:12 EDT

Wal-Mart buying online retailer newcomer

NEW YORK — Wal-Mart has agreed to buy fast-growing online retail newcomer, which had launched with a splash a year ago when it announced its intention to challenge online leader Amazon.

Wal-Mart is paying $3 billion in cash and another $300 million in stock.

The deal announced Monday underscores how serious Wal-Mart is about igniting its online business, which has been slowing even as it has been making big investments in new distribution centres and expanding services.

Buying would let Wal-Mart compete more effectively with and other online retailers. The deal also reflects the difficulties for startups like to make it on their own in a sphere dominated by with its network of distribution hubs and the powerful asset of its Prime membership program.

The deal follows a series of acquisitions by major traditional retailers of online startups in an extremely competitive landscape.