Walmart steps up Amazon battle with nationwide grocery delivery

Walmart

Walmart

While the exact metro areas haven't been disclosed, Walmart claims the expansion will allow its delivery service to serve 40 percent of United States households.

Walmart's grocery delivery isn't cheap - it will cost $9.95 per order with a $30 minimum, unlike Amazon's subscription model that offers free grocery delivery to Prime members.

He said Walmart will be "aggressive" with the rollout and plans to eventually make the service available to all of its U.S. shoppers.

Now, however, Walmart has devised a slick new work-around, according to today's Wall Street Journal: New Yorkers may balk at Walmart being physically inside the five boroughs (even in Staten Island), but it's betting they can't say no to same-day delivery of low-priced groceries.

The service would be rolled out to more than 40 percent of U.S. households by the end of the year, Walmart said Wednesday. Walmart may also be able to use the new service as a way to give its online sales a shot in the arm, after a holiday quarter that disappointed Wall Street due to slowing online sales growth.

Walmart expands home grocery delivery service that could boost it in its ongoing battle with e-commerce giant Amazon. It also allows Walmart to compete with Amazon's two-hour Prime Now service for shoppers of its loyalty program. Amazon is using Whole Foods to deliver fresh groceries to Prime customers in a handful of United States markets and plans to expand the service nationally in 2018. At checkout, they select the window when they want to pick up their groceries curbside, or have them delivered - sometimes as soon as same-day.

About 90 percent of Americans live within 10 miles of a Walmart, Ward said. "We know organics are important to our Online Grocery customers", said a spokesperson in an email.

Walmart is building on those past pilots with this latest delivery expansion, noting that delivery will be accomplished through a combination of "Walmart's personal shoppers and crowd-sourced delivery services". Walmart said more delivery companies will be announced later.

Shipt started delivering groceries from Publix Super Markets in 2015. AmazonFresh costs $14.99 a month and is available only to Amazon Prime customers, who pay an additional $99 annually.

Under the new program, Walmart workers will pack online grocery orders at stores and then hand them off to a delivery company or startups like Uber.

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