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Walmart expands same-day grocery delivery (WMT)
BI Intelligence
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Walmart is expanding its same-day grocery delivery services in San Jose, California through its partnership with Deliv, TechCrunch reports.
Shoppers will be able to schedule their online grocery orders to be delivered between 8 a.m. and 8 p.m., seven days a week. Walmart began testing grocery delivery services with Deliv last year, along with Lyft and Uber.
This is an extension of one of the many online grocery fulfillment methods Walmart's been testing recently.
Building on its relationship with Deliv, the retail giant also partnered with smart lock manufacturer August to test in-home delivery. Walmart will be able to send a one-time code to Deliv’s couriers to allow them to enter customers' homes and put away grocery orders.
Walmart built giant kiosks that allow customers to pickup their online groceries at any time. Customers can choose the kiosk as their pickup option when they order groceries online by selecting “self-service.” Then, they can enter a pickup code or scan a barcode to retrieve their orders.
The company acquired Parcel, which will help it execute same-day deliveries for Walmart.com and Jet.com orders in New York City. Parcel has built out an expertise on delivering in the city, as it has compiled data on buildings it's delivered to, and uses that information to speed up deliveries by giving couriers helpful tips such as where service entrances are located.
Grocery has been fueling e-commerce growth at Walmart, and these delivery options may help it gain an edge over competitors. Walmart Grocery made up more of Walmart’s US e-commerce sales than Sam’s Club and Jet.com combined in Q2 2017. It also accounts for more than half of total sales, making it a critical segment to the retailer.
However, Walmart faces intense competition in this segment, as grocers like Aldi and Costco have been increasing their online grocery efforts. And, as online grocery grows in the US, it's probable that this competition will increase. As such, Walmart will likely benefit from its early efforts, as it can build a reputation among consumers for its online grocery services, possibly luring shoppers away from competitors that were slow to move on grocery delivery.
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