Walmart to expand grocery delivery service nationwide
Walmart to expand grocery delivery service nationwide
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15 March, 2018, 02:35
The retailer announced today that it will expand the service, now available in six markets, to more than 100 cities by the end of 2018.
The retailer also now offers online grocery pickups in 1,200 stores and plans to expand that service to another 1,000 locations this year. The retailer will use some 18,000 personal shoppers to fulfill the orders and delivery services to get the items to the customers.
Amazon seeks to compete for this business through its Amazon Fresh and Prime Now services, and is expanding its delivery from Whole Foods stores, but it can not match the physical reach of Walmart's delivery capacity, he said. Consumers will be charged a $9.95 fee, and orders must be no less than $30. But another review wasn't happy: "What's the point of using this service if I just have to go back to a grocery store to fix your mistakes?", they wrote. It also expanded a partnership for home delivery of fresh groceries with Instacart, which recently partnered with Loblaw in Canada to deliver fresh online grocery orders in Vancouver and Toronto. With Walmart being the US' largest grocer, the move may help the retailer fight Amazon from one of its strongest positions.
"We're excited about the progress we're making on Online Grocery Delivery and what this expansion will mean for our customers", a Walmart spokesperson told Mashablein an email. It's the service equivalent of putting cartons of milk in the back of the store.
Walmart also offers its BOPIS service for groceries - with an added feature that enables guests to stay in their vehicles. "For shoppers who are new to the program when it rolls out later this year, Walmart is offering $10 off a first order of $50 or more, and free delivery if a basket also meets that threshold".
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"For WMT, given how early it is, we think it can lead the growth, and attain [online grocery] share well above their online market share today in other categories", Sigman said.
Walmart is partnering with Uber and other crowdsourced delivery companies to transport groceries to customers' doorsteps.
Amazon also is looking to leverage its own grocery footprint following its blockbuster $13.7 billion purchase of Whole Foods previous year.
"A second aspect is that this is a further indication that it will be Walmart, not Amazon, that is the big competitor to supermarkets for the online grocery shopping business", he added. Target, meanwhile, agreed to acquire delivery startup Shipt a year ago to expand its capabilities. The $9.95 delivery fee could "probably" be reduced if the service becomes more efficient, USA stores Chief Executive Officer Greg Foran said at an investor conference Wednesday.
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