Walmart wants to deliver groceries to your door and the grocery giant is getting some help from Uber and Lyft.
The company will test a grocery delivery program with the two ride-hailing giants later this month in Denver and Phoenix, the Wall Street Journal reported. The announcement is expected to be made at Walmart’s annual shareholders meeting Friday.
Walmart will use Uber and Lyft driver for “last-mile” deliveries. When an online order comes through, Walmart employees will gather the products and a Uber or Lyft driver will complete the delivery, which will cost customers an extra $7 to $10, the Journal reported.
TechCrunch noted that Walmart launched a similar pilot program in March for Sam’s Club, using a startup called Deliv to deliver items to customer’s homes. Walmart also already offers curbside pickup for online grocery orders and uses its own trucks for home deliveries in some cities.
As Walmart tries to experiment with new and efficient ways to serve today’s customer, it is facing pressure from competitors like Amazon, which delivers groceries via AmazonFresh and is expanding its own delivery infrastructure. Other companies like Instacart, Google, and Postmates also are competing with similar delivery offerings.
Walmart also competes with Amazon Prime, Amazon’s membership program that offers perks like free 2-day shipping and access to the Prime Video streaming service — Walmart launched its own free shipping service last year.
This is also an experiment for Uber and Lyft, both of which are looking beyond their traditional ride-hailing services for new business. Uber has tested delivery of products via its UberRUSH platform and is expanding its UberEATS food delivery service; Lyft, meanwhile, has not done much in the delivery arena.