Wal-mart Stores Inc. (NYSE: WMT) announced their expansion of their online grocery delivery service to Orlando and Dallas markets as Amazon’s $13.7 billion bid for Whole Foods Market Inc. will be voted on by shareholders. If passed, the deal will be one step closer to finishing.
Amazon’s acquisition of Whole Foods will give them access to Whole Foods’ 450 locations and will allow them to build distribution points for their own grocery service called AmazonFresh. Walmart’s online grocery delivery expansion on the other hand will be completed through a partnership with Uber. Employees will act as personal shoppers and will prepare online grocery orders. Uber drivers will then deliver the goods to consumers’ homes.
Walmart has been testing delivery in various ways and are trying to general merchandise deliveries led by associates while also using Walmart trucks and drivers. Their online grocery service is in 6 markets. The company has their own drivers to deliver groceries in their San Jose, California and Denver locations while Uber drivers are used in their Phoenix, Tampa, Orlando, and Dallas sites. Walmart also gives shoppers the option of ordering groceries and picking them up at one of their 900 participating locations out of 4,100 stores.