Walmart To Have Employees Deliver Packages On Their Way Home
Brick-and-mortar retail giant Walmart is testing a new delivery system that would have Walmart employees drop off online orders to their customers' front doors on their commutes home from work.
The program, currently being tested in New Jersey and Arkansas, aims to take advantage of Walmart's extensive physical presence and existing supply chains to get a leg up on shipping from massively succesful e-commerce competitor Amazon. Employees can opt-in to deliver packages that align with their route home for more money, per a Thursday blog post on Walmart's corporate website.
"It just makes sense: We already have trucks moving orders from fulfillment centers to stores for pickup," Marc Lore, CEO of Walmart's e-commerce division and founder of Jet.com said in the post. "Those same trucks could be used to bring ship-to-home orders to a store close to their final destination, where a participating associate can sign up to deliver them to the customer's house."
Walmart had previously partnered with ride-sharing apps Uber and Lyft in certain cities to deliver goods, but the Arkansas-based company is looking to flex the muscles in its massive supply chain and cut out the middle man. By pulling from over one million retail employees from 4,700 stores nationwide, Walmart wants to beat Amazon's wildly popular two-day shipping guarantee on that crucial last mile of shipping.
"Not only can this cut shipping costs and get packages to their final destinations faster and more efficiently, it creates a special win-win-win for customers, associates and the business." Lore continued.
Walmart already operates an online grocery pickup site in which shoppers can pick up their orders in the parking lots of their stores and is now directly competing in online retail with Amazon, after its $3.3 million purchase of online reatiler Jet.com.