Walmart Tests Grocery Delivery With DoorDash

Advertisement

Walmart Inc (NYSE:WMT) announced that the company is teaming up with DoorDash in order to roll out a grocery delivery service.

Walmart

The retail giant is hiring the on-demand restaurant delivery service in order to use its logistical expertise for grocery deliveries. The idea is to compete with Amazon.com, Inc. (NASDAQ:AMZN), which acquired Whole Foods last summer to deliver groceries to your doorstep.

The Walmart partnership with DoorDash will kick off with a test run in Atlanta in order to determine if it’s worth rolling out to the rest of its markets. “You can use the term white label, but our drivers still will often wear the DoorDash shirt and have the DoorDash bag,” DoorDash COO Christopher Payne said.

“But if you go to Walmart.com, and order from Walmart in Atlanta, you’ll have no idea it’s from DoorDash,” Payne added. “We’re very supportive of that scenario, that’s the DoorDash Drive scenario. We’re excited to build a business with them and provide this capability.”

Payne also said that his company hopes that this move will be the first of a major expansion of DoorDash Drive as it hopes to hone in on local food delivery across the U.S. Teaming up with Walmart will allow the company to attain more data when it comes to deliveries.

This data can be used to ensure these deliveries are more efficient and in a manner that attracts more customers, leading to the hiring of more drivers.

WMT stock was up about 0.4% Tuesday.


Article printed from InvestorPlace Media, https://investorplace.com/2018/04/walmart-inc-wmt-delivery-doordash/.

©2024 InvestorPlace Media, LLC