Walmart is expanding its grocery delivering business with the help of a new partner. This multinational retail corporation recently detailed its plans to expand its grocery delivery business across the U.S. in 2018. Walmart has the goal to offer delivery in 800 of its stores and over 40% of U.S. households. Learn more about Walmart’s new partnership to remain competitive in the grocery-delivery industry!
Walmart recently announced that they were partnering with Postmates, an on-demand delivery service, in hopes of expanding its grocery-delivery business. The partnership will allow Walmart to provide same-day delivery of fresh food and other items to customers who order online. Walmart will begin this partnership in certain states in the U.S. like Charlotte, North Carolina, and will soon expand to 100 other metro areas in the coming months. To this day, Walmart has been working with partners instead of creating its own delivery service because they want to be able to quickly scale up their grocery delivery operation.
On the other hand, Amazon, which recently acquired Whole Foods, recently implemented a two-hour delivery window for their customers to enjoy. Target also offers same-day delivery of groceries, so Walmart’s decision to do the same is another step closer for their company to remain competitive. Walmart does not want Amazon to dominate the grocery delivery market, thus their decision to implement their own grocery delivery partnership. Walmart’s delivery service does offer a competitive advantage over some rivals, including Instacart and Shipt which doesn’t mark up the cost of goods, nor does it require a subscription. Walmart would only implement a $9.99 per-order fee, which helps to fund the partner-provided delivery.