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Walmart's online same-day grocery ready for prime

14 March 2018

Walmart will charge a flat fee of $9.95 for delivery and require a minimum order of $30 to access the service.

Game On. Walmart (NYSE: WMT) will deliver groceries in 100 cites as a challenge to Amazon (NASDAQ: AMZN) and its Whole Foods operation.

Walmart will use its own employees and crowd-sourced delivery services to shop for and deliver groceries.

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Walmart plans to use its team of personal shoppers to pull together orders in stores and will team up with crowdsourced delivery services including Uber to send groceries. The service, available today in six markets, will grow to serve more than 100 metro areas across the country, the company said.

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. All will be required to get groceries to a customer in the same time that a shopper would take to drive home, he said. "We will leverage our footprint where it makes the most sense".

"We have learned an terrible lot from our delivery pilot", Walmarts vice president of digital operations Tom Ward said during a telephone press conference on Tuesday. There has been plenty of activity from retailers like Walmart and others in the grocery delivery space to support it. Then, a driver will deliver them to customers.

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About 90 percent of Americans live within 10 miles of a Walmart, Ward said. Amazon also has spent over a decade trying to build up its AmazonFresh grocery delivery service, but so far seen limited success.

Online sales comprise just a fraction of the $800 billion USA grocery market - a smaller share than in countries like the United Kingdom or South Korea - but consumer acceptance is growing.

Delivery is becoming less of an option, and more of market demand. He also said Tuesday that the company now employs more than 18,000 personal shoppers with additional hires planned as both grocery pickup and delivery services are rolled out to a larger audience this year.

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Walmart also will use Jet, the Hoboken, NJ-based web retailer it acquired in 2016, to offer a same-day grocery-delivery service in New York City to compete with Amazon's Prime Now same-day delivery service, according to the Wall Street Journal (paywall).

Walmart's online same-day grocery ready for prime