Walmart to Expand Online Grocery Delivery to 100 Metros

Walmart to Expand Online Grocery Delivery to 100 Metros

Walmart will use its own personal shoppers to pack orders placed online and a "crowd-sourced delivery service" to transport these same groceries to customer doorsteps.

Walmart is making a major push into online grocery delivery. Walmart has focused on improving the freshness and quality of its assortment the past several years, while aggressively lowering prices on items and rolling out convenience-based services like its online grocery pickup for customers.

The service, now in six cities, will roll out to more than 40 percent of US households by the end of the year, the company said on Wednesday. The retailer did not specify which markets will offer the service as part of the latest expansion, but Tom Ward, vice president of digital operations, said Walmart will be aggressive with the rollout. It will offer shoppers same-day delivery of fresh produce, meat and seafood, along with non-perishable items. According to CNBC, Uber will continue to be one of the retailer's delivery partners. Walmart may also be able to use the new service as a way to give its online sales a shot in the arm, after a holiday quarter that disappointed Wall Street due to slowing online sales growth.


Amazon's purchase of Whole Foods Market a year ago has raised the stakes in the highly competitive grocery delivery wars.

That means both Amazon and Walmart have a lot of potential business they could move online in future years - if consumer behaviors eventually change. He also said Tuesday that the company now employs more than 18,000 personal shoppers with additional hires planned as both grocery pickup and delivery services are rolled out to a larger audience this year. The service uses personal shoppers to select items and then take them to shoppers' cars parked outside. No subscription is required.

For shoppers who are new to the program when it rolls out later this year, Walmart is offering $10 off a first order of $50 or more, and free delivery if a basket also meets that threshold. AmazonFresh costs $14.99 a month and is available only to Amazon Prime customers, who pay an additional $99 annually. Walmart said more delivery companies will be announced later.

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