Walmart has partnered with Postmates to grow its grocery delivery business, the retail giant announced recently. The system, Walmart Online Grocery Delivery will begin in Charlotte, North Carolina. There are plans in place for it to reach other markets in the coming months.
“Both Walmart and Postmates strive to make the lives of our customers easier,” said Dan Mosher, SVP, Merchant Lead at Postmates, in a statement about the Walmart partnership. “With our growing fleet of 160,000 couriers, we are confident that we’ll be providing Walmart customers with the ultimate convenience.”
Postmates will join Uber and Deliv, which were already delivery partners with Walmart in select markets such as Dallas, Denver, Orlando, Phoenix, Tampa and San Jose.
Walmart recently outlined its plans to grow its delivery service across the U.S. in 2018, expanding from 6 to 100 metros in that time. The result will let Walmart offer delivery in 800 of its stores, and able to service more than 40% of households in the U.S.
So far, Walmart has been using partners instead of developing a delivery service in-house in an effort to scale up the service faster. Competition from Amazon looms on the company’s mind, as the e-commerce giant’s own delivery services are booming through Whole Foods and Prime Now.
To that point, Amazon announced Whole Foods grocery delivery in the Los Angeles and Orange County recently. Amazon is quickly integrating its Prime service and Whole Foods, with discounts and coupons for Prime members as well as Whole Foods delivery options. Beyond that, it has installed Amazon Lockers- the company’s own electronics shop, at Whole Foods stores.
Promoting the greater affordability of pickup, Walmat wasn’t focused on delivery at first. The Walmart Curbside Pickup system is far more readily available, now live at 1,200 stores, with 1,000 more coming. However, it realized letting Amazon dominate the delivery market was unwise.
Walmart offers perks such as not marking up the price of goods for delivery, and not requiring a subscription. A $9.99 order fee helps fund the delivery its partners provide.