They are taking on the likes of Instacart and DoorDash with the launch of a new line of business called Walmart GoLocal, which delivers goods to customers of other businesses.
The discount giant is building the new service on the existing infrastructure supporting the Express Delivery same-day delivery service it rolled out in 2020. This includes drones, autonomous vehicles and market fulfilment centres.
This white-label delivery-as-a-service offering includes nationwide delivery capabilities on a range of assortment, including those with size and complex requirements, as well as the flexibility to meet varying timelines. Walmart says it will rapidly expand GoLocal to offer additional services.
The retailer says that the GoLocal business is an important part of its overall strategy, which includes diversifying its revenue streams and profit pools with initiatives like the Walmart Connect third-party ad platform and Walmart Fulfilment Services network for third-party marketplace sellers.
“Acting as a delivery partner allows Walmart to leverage its own infrastructure and at the same time put a firewall up against the Amazon, other marketplace providers, and direct-to-consumer players using Shopify,” said Sylvain Perrier, President and CEO of grocery e-commerce platform Mercatus. “This strategy also provides a value add for Walmart by offering local resellers on its marketplace a fulfilment option that previously would’ve been handled elsewhere. By acting as a third-party partner, Walmart will be able to gain visibility into a wide range of delivery orders outside of the Walmart ecosystem that would’ve gone to other carriers.”
