Wal-Mart Competes With Amazon, Launches Same-Day Pilot Program

Everyone was expecting for it to happen. Experts knew that the world's largest retailer was going to dive into Same-Day Delivery, it was only a matter of when. Now, Wal-Mart has said it's time.

Wal-Mart has announced that it will launch several same-day delivery pilot program of grocery deliveries in Denver, as well as another unidentified market this month. It will utilize Uber and Lyft ride-hailing services to perform the deliveries. Walmart currently has a pilot program of “last mile” grocery and general merchandise deliveries with Deliv in Miami, which began in March. San Jose has been a city in which the retailer has been testing same-day grocery delivery. The Walmart and Sam’s Club pilot program will cost customers a $7-$10 delivery fee at the time of purchase online once they choose “same-day delivery” at checkout.

The article mentioned that Wal-Mart appears to be partnering with start-up delivery company Deliv for its' same-day delivery pilot program. Deliv founder and CEO Daphne Carmeli stated, “We got a call from Walmart and are pretty excited to be working with the biggest retailer in the world. It’s amazing the effect the ‘A-word,’ Amazon, is having on the e-commerce landscape. They have created a customer expectation of same-day delivery. It’s the new standard. If you’re selling physical goods to customers you’ve got to figure out a way to get them to customers as quickly as possible.”

In recent years, Amazon has been intensely focused on same-day delivery. Based on its frequent expansion, it is clear the e-retail leader's vision is to offer the service nationwide. Amazon added 11 major US cities to its' same-day delivery program. Those new additional US cities included Sacramento, Fresno, Stockton, Louisville, Raleigh, Cincinnati, Richmond, Tucson, Milwaukee, Nashville, and Charlotte. Prior to that, Amazon's same-day delivery involved San Francisco Bay Area, Seattle-Tacoma, Dallas-Fort Worth, San Diego, Indianapolis, Phoenix, Tampa Bay, Baltimore, Washington DC, New York, Philadelphia, Chicago, Orlando, and Atlanta as well. Therefore, the retailer has same-day delivery in 27 cities total.

What makes Amazon's same-day delivery very competitive is that it is free for Prime members. For all online orders over $35, its' members get the service free within participating cities, which more than likely there will be more cities to come this year. The holiday season is becoming more and more opportunistic for physical and web-based retailers to create sales growth. Amazon, Wal-Mart, Macy's, BestBuy, and more will continue to position themselves aggressively with same-day delivery in the coming months.

With offering last-mile deliveries, most retailers outsource to a company that can perform the actual service for them. Wal-Mart could partner with a Same-Day Courier like A-1 Express to pick up and deliver from their physical stores. The Chicago Courier has the courier expertise and the national footprint to expand with like-sized retailers like Wal-Mart. Just any delivery provider won't due for the robust operation and demand that Wal-Mart has. A-1 Express is suited for Wal-Mart and can help establish an optimal same-day solution.

Reference: 6.3.16, www.retailingtoday.com,Dan Bethauime, Wal-Mart taking on Amazon with same-day delivery pilot