Walmart uses taxi apps for last-mile delivery

24 June 2016

Walmart is piloting a last-mile delivery system in the US using app-controlled taxi services such as UberLyft and Deliv

The company said it had started tests of grocery delivery through Uber in Phoenix and Lyft in Denver.

A pilot of Sam’s Club – a Walmart-owned membership-only retail club – started in March, with Deliv transporting general merchandise and groceries for business members in Miami.

Walmart said the process started with a customer placing their grocery order online and selecting a delivery window. 

Once personal shoppers had selected the required items, they could request a driver from one of the taxi services to come to the store, pick up the order and take it directly to the customer’s location. 

Customers pay a $7 to $10 delivery charge online, and make no payment to the driver. 

Analysts have greeted the move positively, saying it would help Walmart reach more consumers without having to spend heavily on developing a last-mile delivery service.

Data analyst 1010data said the partnership had the potential for success as its studies had shown a large percentage of retail shoppers also used Uber or Lyft, particularly in the cities where Walmart is piloting the scheme.

1010data said the pairing would also help Uber and Lyft understand the parcel delivery business, a sector they had previously dabbled in.

“Uber and Lyft are typically most popular in urban areas. Walmart is typically most popular in suburban areas,” said the company. 

“By partnering together, all three companies not only stand to win from a business development perspective, but also from a collaboration, experience and PR perspective.”

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