Customers in two more American cities; Orlando and Dallas, are able to get same-day orders from Walmart (NYSE: WMT) delivered by Uber.
The discount giant has expanded its same-day service which was only available in Tampa and Phoenix to those cities, CNBC reported. Walmart customers in Denver are able to get orders delivered by Lyft, the article did not say if that service will be expanded.
Using the service customers order items through Walmart.com or Walmart’s App that are delivered by an Uber driver, Walmart’s website reported. Once Walmart receives the order, associates at the store or a fulfillment center pull the order and pack it. The Uber person picks it up and takes it to the final address.
A Major Threat to Amazon
This is potentially a major threat to several companies including UPS (NYSE: UPS), FedEx (NYSE: FDX) and Amazon (NASDAQ: AMZN).
Such delivery arrangements are a threat because they can be easily scaled up using existing stores and offered through any store that offers pick up of online orders. Walmart already offers such pickup at all of its’ U.S. stores.
Kroger (NYSE: KR) has a similar arrangement with Uber in some cities. Google Express, owned by Alphabet (NASDAQ: GOOG), and Deliv are offering similar delivery options in some markets. Deliv is working with the Walmart’s subsidiary Sam’s Club in Miami. Walmart is also offering delivered through branded company vehicles and delivery by associates on the way home from work in some markets.
Walmart press releases did not say if the Uber service will be available to Sam’s Club members. Nor is there any indication that the Walmart deli; or Subway and other restaurants inside Walmart stores, will be added to UberEats.
Is Walmart Winning the Delivery Wars?
Amazon is certainly aware of this potential threat. It is attempting to expand its brick and mortar footprint by buying Whole Foods (NASDAQ: WFM). Whole Foods is already participating in Google Express.
Uber needs new sources of income and services that do not compete directly with taxis to survive. Delivery is certainly one of those services.
It looks as if Walmart is actually beating Amazon in the delivery wars. The discount giant has unveiled a host of new same-delivery and pickup tools in recent months.
These include kiosks where customers can pick up merchandise instore, and better reordering at the App and website. Related efforts include improved inventory and expansion of the online ecosystem by buying diverse brands including Bonobos and Jet.com. Press releases did not say if Uber will be making deliveries for other Walmart online brands such as Shoes.com, Jet.com, Bonobos, and MooseJaw.
If this continues people throughout the U.S. and Canada might soon be able to get their groceries; and household essentials, delivered on a same-day basis -via Walmart and Uber. One wonders what impact that will have on the lifestyles of average North Americans.