Walmart tags DoorDash to provide grocery delivery in Atlanta metro

by Kim Souza ([email protected]) 489 views 

Walmart has partnered with San-Francisco-based DoorDash to deliver groceries in the Atlanta metro, a move that is part of the retailer’s announced goal to in the next six months provide home delivery to more than 40% of U.S. households and use around 700 stores as fulfillment centers.

Earlier this month Walmart announced a deal with Postmates to facilitate grocery delivery in Charlotte, N.C. The two markets join Denver, San Jose, Phoenix, Tampa/Orlando and Dallas. Walmart is also using Uber, Lyft and Deliv for final-mile grocery deliveries in other markets. The retailer seeks to provide this delivery option in more than 100 markets this year.

Walmart has not yet said if any Arkansas markets will be part of the grocery delivery push. Thus far the markets chosen have been larger metros in excess of 2.7 million people with four major grocery competitors. Northwest Arkansas, for example, is much smaller with a population of roughly 530,000 and no major grocery competitors like Kroger, HEB, Publix or Harris Teeter in the markets offering home delivery.

Walmart is using third-party delivery services for this effort and its ability to access that service in target markets is a key factor in determining which metros get added. Delivery costs are $9.95 for a minimum grocery order of $30. Walmart customers will continue to get the same prices for their online orders as they would get if they shopped in stores.

“We’re connecting all the parts of our business to create a shopping experience like no one else can. With the expansion of our Online Grocery Delivery program, customers can have great items at everyday low prices delivered to their door with the click of a button,” said Greg Foran, Walmart U.S. president and CEO. “With the help of DoorDash, we’re delivering the best of Walmart to customers in Atlanta and beyond.”

Walmart has more than 18,000 personal shoppers working its stores in the Atlanta area. Personal shoppers must complete a three-week training program learning how to select the freshest produce and the best cuts of meat for online grocery customers, the company noted in the release.

“Our work with Walmart marks DoorDash’s official launch beyond restaurant delivery,” said DoorDash’s Chief Operating Officer Christopher Payne. “We look forward to expanding across the country, enabling Walmart customers everywhere to spend more time doing the things they love.”

Walmart also continues to roll out its online grocery pickup which is available in about 1,300 stores, growing to 2,000 stores by the end of the year. The drive-up concept for grocery delivery was tested in Bentonville with the drive-thru grocery concept opening in 2014. Walmart then pivoted toward using existing stores for online pickup. Walmart is adding drive-thru pickup bays in stores where it can do so, and using reserved parking spots in other stores.

Part of Walmart’s goal to become the most trusted retailer is to offer consumers more choices in how they shop and receive purchases. The retailer also continues to test a temperature controlled drive-thru storage container in Oklahoma City where consumers can pull up to the container, enter their code and the bags are dispensed.

Walmart’s push to expand grocery delivery comes at the same time Amazon is revamping Whole Foods to make that choice more easy for its 100 million Prime Members. It’s also on the heels of grocery competitors in key markets like Dallas and Tampa /Orlando who are also offering grocery pickup and grocery delivery.