• Retail Dive

Walmart to sell its delivery service to other businessesPublished Aug. 24, 2021

Dive Brief:

  • Walmart announced Tuesday that it is offering its delivery platform to other businesses — a move that further diversifies its revenue stream and profit pools.

  • Its new line of business, called Walmart GoLocal, gives other companies access to the retailer's delivery capabilities, according to a press release.

  • The white-label delivery service includes delivering products with size and other complex requirements as well as the option to meet a range of timelines, Walmart said. The retailer did not disclose the price of the service.

Dive Insight:

The Bentonville, Arkansas, retailer is inching more towards becoming a service provider, not only to consumers but to fellow merchants as well.

"In an era where customers have come to expect speed and reliability, it's more important than ever for businesses to work with a service provider that understands a merchant's needs," John Furner, president and CEO of Walmart U.S. said in a statement.

Back in July, Walmart announced it is selling several of its own omnichannel capabilities, including pickup and drive up, to thousands of small and mid-sized businesses in partnership with Adobe.

Tom Ward, last mile senior vice president at Walmart U.S., said Walmart GoLocal is made to be customizable for other businesses of various sizes and categories. Walmart emphasized speed and efficiency as the selling points for the service. The company also plans to include additional offerings with WalmartGoLocal.

Walmart GoLocal has already made agreements with several retailers and is currently accepting new merchant partners.

Walmart launched and grew its delivery and express delivery service in just three years, per the release. Since then, its fulfillment service has reached almost 70% of the U.S. population.

It also began branching into a range of delivery methods. Walmart made strategic investments and partnerships with drone service companies like DroneUp and Flytrex earlier in recent months. The retailer also invested an undisclosed amount to autonomous vehicle startup Cruise in April.

Additionally, the company announced in January that it would add automated micro-fulfillment centers to dozens of its locations as well as automated drive-thru pickup points at some stores.

Apart from its efforts in the business-to-business market, Walmart has for years been making moves away from physical retail by offering more than just merchandise. In 2019, Walmart said it was opening 100 veterinary clinics in stores, and that same year, Walmart introduced a Walmart Health center in its Dallas,

Georgia, location. And just recently, Walmart has been attempting to break through the financial service space through its fintech startup with Ribbit Capital.

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