Lyft and Uber are two of the main players in the world of ride sharing, and operates in the majority of the US, as well as other countries. Uber has ventured out of just picking up and dropping off passengers before. Which included doing delivery services, like UberEATS which delivers food from select restaurants. Now it looks like Walmart wants to use Uber and Lyft to deliver groceries. According to Walmart's blog post that they published this morning, the three companies are working together to test a grocery delivery service, with pilot programs beginning in Denver and Phoenix later this month.
The way this service is supposed to work is that customers would place their order at Walmart.com. Then Walmart employees would prepare that order and from there, they call an Uber or Lyft driver to pick up and deliver the order. The customer would be paying a delivery charge between $7 and $10, which goes to Walmart. It's pretty simple, and it means that you would get your groceries today, in fact within a few hours. Walmart's head of e-commerce, Michael Bender said in a prepared statement that the company wants to start small which will allow customers to guide them. "Testing new things like last-mile delivery allows us to better evaluate the various ways we can best serve our customers how, when and where they need us."
If this new service works out for Walmart and they expand to more and more cities, this would put them in direct competition with Amazon's grocery delivery service, AmazonFresh. Even though AmazonFresh is only available in a few markets right now. This is important for Walmart, as they and many other retailers, are losing business to Amazon. Simply because Amazon offers fast shipping and lower prices – primarily because they don't have store locations to keep up or have staff to operate these locations. Lately, Walmart has been looking at boosting the e-commerce services that they offer, largely to compete with Amazon's own services. This is one way to boost that service, significantly. If customers can order groceries in the morning and they arrive before dinner time, that would be very convenient for a lot of customers that work all day long.