15 March, 2018
Moreover, Walmart's online grocery delivery rollout will supplement the retail giant's ongoing expansion of grocery pick-up offerings, resulting in 2,200 stores that offer this service from 1,100 stores by this year. Now that stands at around 18,000, though the retailer says it expects to add "thousands more" this year. Walmart is working with Uber and other third-party crowd-sourced delivery services like Deliv to get the orders shuttled to customers.
Walmart will offer a flat delivery fee of $9.95 and orders must be $30 minimum.
Shoppers can make their purchases on the grocery section of Walmart's website or through the Walmart Grocery app.
Walmart will hope its expanded delivery service inspires bigger, more frequent orders and brings in new customers.
"We're going to gain customers who might not have access to a brick-and-mortar store", Ward said. Due to its proximity to customers, Walmart could use its physical locations as a distribution hub to leverage its supply chain and provide faster deliveries.
Speaking of delivery services, Walmart's efforts to enrich consumers' experiences by providing easy shopping methods and seamless deliveries are quite praiseworthy.
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The move comes as Walmart continues to embrace e-commerce as a way to compete with Amazon (NASDAQ: AMZN). During a media call yesterday, Tom Ward, Walmart's vice president of digital operations, said in delivery test markets such as Dallas and San Jose, California, the company gained shoppers outside its normal store coverage area.
Walmart launched its online grocery delivery program in June 2016 as a trial in Phoenix. The company added that more workers would be moving into that position weekly, as more stores become outfitted to fulfill orders through its online site.
Walmart's new service could also be a response to Amazon's $13.2 billion purchase a year ago of Whole Foods.
"No subscription, no price markups", Walmart wrote in its release, an apparent dig on Amazon which has increasingly tied grocery delivery into its Prime membership program.
Instacart delivers groceries from 441 of the retailer's 519 USA warehouses and the service will be rolled out to the remaining locations by the end of 2018.