Walmart, which remains the world’s largest retailer despite stiff competition from e-commerce, is expanding its grocery delivery pilot with Uber to Orlando and Dallas as it seeks to stake a stronger claim in the online grocery business.
In a blog post, the brand said it has “been testing delivery in a number of ways for a while now in key markets across the country” – which has reportedly included other US cities like Tampa, Phoenix, Denver and San Jose, with general merchandise deliveries in some locations and full-fledged grocery delivery with Walmart trucks and drivers in others.
To place an order, customers build an online basket on the Walmart Grocery site and select a delivery time. Personal shoppers then pick and scan the items to ensure accuracy. Thereafter, the team requests an Uber delivery partner to pick up the order and take it to the customer’s location, Walmart said.
Walmart began testing grocery delivery through services like Uber last year and said customers “love the convenience of a delivery option.”
Grocery delivery is a burgeoning sector, as evidenced by Amazon’s $13.7bn-acquisition of Whole Foods earlier this year. It also includes players like FreshDirect and Peapod, and grocery retailers themselves.
A recent study from food marketing organization Food Marketing Institute and research firm Nielsen found the share of online grocery spending could reach 20%, representing $100bn in annual sales, by 2025.