Walmart launches delivery service to take on DoorDash and Instacart
The retailer wants to use contract works to connect retailers to shoppers in rural communities
Walmart said Tuesday that it will start commercializing its delivery platform, helping businesses of all sizes deliver goods to customers through contract workers, autonomous vehicles and even drones.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WMT | WALMART INC. | 90.44 | +2.04 | +2.31% |
Three years ago, the nation's largest retailer launched and scaled delivery and Express delivery for its shoppers on more than 160,000 items from more than 3,000 stores, tapping into nearly 70% of the U.S. population.
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With Walmart GoLocal, a potential threat to delivery services such as Uber and DoorDash, the company aims to target more local communities, particularly businesses in rural areas that have struggled to implement their own delivery operations.
"We’ve worked hard to develop a reliable last mile delivery program for our customers," Tom Ward, senior vice president of customer products at Walmart, said. "Now, we’re pleased to be able to use these capabilities to serve another set of customers, local merchants."
Shoppers wait in line to pay for their purchases at a Walmart store in Los Angeles, California on November 24, 2009. (Robyn Beck/AFP via Getty Images / Getty Images)
Walmart has already signed a number of contractual agreements with national and small-business clients and is still selecting new business partners.
The company plans to begin operations within a few months although it declined to offer figures on the investment or financial targets for the service.
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However, Walmart touted that its delivery capabilities and nationwide coverage will empower businesses to grow.
"In an era where customers have come to expect speed and reliability, it’s more important than ever for businesses to work with a service provider that understands a merchant’s needs," Furner said.
Ward told reporters on a call Monday that fees for the service will be negotiated on a case-by-case basis. The delivery time could be as fast as a few hours or up to two days.
Walmart is already offering small- to medium-size businesses e-commerce technology it developed to let shoppers buy products online and pick them up at stores. The effort, kicked off in July, is part of a partnership with technology provider Adobe.
The Associated Press contributed to this report.