Yahoo News 
Walmart is testing grocery delivery with help from Uber (WMT)
BI Intelligence
This story was delivered to BI Intelligence "E-Commerce Briefing" subscribers. To learn more and subscribe, please click here.
Walmart is adding Orlando and Dallas to its pilot program for testing grocery delivery in conjunction with Uber, according to a company blog post.
The program was originally tested in Phoenix and Denver with both Uber and Lyft, but it appears to be exclusively using Uber now.
The latest version of the program has consumers order products online and choose a delivery time, after which Walmart employees compile the order in-store and contact UberRUSH, Uber’s on-demand delivery service, to pick up and deliver it.
As more competitors offer grocery delivery, Walmart is looking to stay on top of the trend. Grocery accounts for 56% of Walmart’s business, so the company cannot afford to lose customers to other grocers because they offer delivery. And there are plenty of alternatives for Walmart to be worried about, as Aldi has recently introduced grocery delivery in the US, more small grocers are considering the idea, and Amazon is already offering AmazonFresh. Additionally, the e-commerce giant will likely deliver from Whole Foods locations following its acquisition of the grocer. Walmart has emphasized click-and-collect options across all product categories in the hope of leveraging its large brick-and-mortar network, but offering grocery delivery could add an alternative that would help it meet a wider array of consumer needs.
Meanwhile, grocery delivery could revitalize UberRUSH as it shifts its focus. Walmart is the biggest grocer in the US, so if the program is eventually rolled out to all Walmart locations, Uber’s participation in the initiative could be lucrative. This shift to grocery delivery follows UberRUSH ending its restaurant delivery services, and is part of a wider pivot to become a full-scale on-demand logistics provider, where partnerships will be crucial. Kroger is also using UberRUSH in a grocery delivery pilot, indicating the service may be finding success with its new strategy. If UberRUSH can build on the progress it is making in the grocery space, it could extend into other areas, particularly if its newly minted partners cater to additional categories.
This could point to a future where retailers of all sizes work with third-party services to offer deliveries. Services like UberRUSH could make delivery a possibility for retailers that don’t have the capabilities or size to execute such an offering on their own. Quick delivery is important to consumers, and no retailer wants to lag behind its competition, so there is likely strong interest in these kinds of partnerships. If these types of partnerships become widespread, it could help even the playing field, eliminating the near-monopoly retail giants like Amazon have on speedy fulfillment.
To receive stories like this one directly to your inbox every morning, sign up for the E-Commerce Briefing newsletter. Click here to learn more about how you can gain risk-free access today.
See Also:
