Wal-Mart has revealed that it will be rolling out grocery delivery to 100 metro areas over the course of 2018, which means grocery delivery will be available from the retailer to roughly 40% of U.S. households. Deliveries will cost $9.95 with a minimum $30 order and companies like Uber Technologies Inc will provide transport.
Intense competition is sweeping the grocery market, following Amazon's purchase of Whole Foods past year.
In February Amazon unveiled free two-hour delivery of Whole Foods purchases for Prime members in four markets - Austin, Cincinnati, Dallas and Virginia Beach.
It continues to offer its service from Whole Foods stores.
However, with both grocery pickup and delivery, Walmart is able to leverage its square footage to its advantage.
The retailer also offers an Online Grocery Pickup service that allows customers to order their groceries online and pickup them up in stores without ever getting out of their cars.
The company's newest challenge to Amazon targets two industries that are increasingly appealing to retailers: e-commerce and grocery. "With the help of our personal shoppers and third-party delivery services, customers can have quality groceries delivered right to their doorstep".
Increasing sales and foot traffic hasn't been a problem for Costco or Walmart in Canada. It also expanded a partnership for home delivery of fresh groceries with Instacart, which recently partnered with Loblaw in Canada to deliver fresh online grocery orders in Vancouver and Toronto. Soon to play in a market near you: unmanned delivery vans and descending drones.
Walmart plans to hit a 40% United States online growth target by 2019, and the company just made a move to get it there, a Credit Suisse analyst says.
To order, customers will go to Walmart.com/grocery or the Walmart Grocery app to build an online basket, place order and select delivery time.