- September 1, 2017
- 2 minute read
Walmart Utilizing Uber For Delivery
The trial was successful enough that Walmart is expanding the pilot to Orlando and Dallas. A responsible expectation is the service will be nationwide soon if success continues in the new markets. The delivery option is already available in Denver, San José, Phoenix and Tampa.
Walmart considers online grocery as an untapped opportunity to expand sales. More retailers are moving into the online food market after the success of ingredient and recipe meal kit services. The popular services with millennials includes Blue Apron, Hello Fresh, Plated, and The Purple Carrot.
Walmart is taking direct aim at competing with Amazon who recently purchased Whole Foods. Amazon will provide food delivery services through Whole Foods. 56% of Walmart’s annual sales in the United States comes from their food business. The other major supermarkets in the U.S. including Wegmans now offer delivery options in most markets.
“We’re working hard to find a way to get you fresh, quality groceries all while keeping a little more time on your calendar,” said Mike Turner, Vice President of E-commerce Operations on the company’s blog. Uber has an existing platform available to Walmart, and this saves time and the money required to build their own. Walmart’s plan also can be a win for Uber who continues to struggle becoming a profitable business.
Turner also wrote in the blog post that the company continues to test delivery options for general merchandise and the utilization of Walmart trucks and drivers for grocery delivery.
The process in the available markets works as follows. Customers order by shopping online and select the most convenient time for delivery. A personal shopper than collects the order. Once the shopping is completed an Uber is requested to come to the store and deliver the order.
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