Walmart has followed in Amazon’s footsteps and launched a last mile delivery service ahead of holiday season in the US.
The leading US retailer started trialling its last mile delivery vans earlier this year as Amazon led the push into rapid delivery during the pandemic.
The United Parcel Service (UPS) struggled to keep up with the demand of packages during the pandemic which has led to retailers and ecommerce companies seeking different options including in house rapid delivery services.
Walmart’s last mile delivery service, coined GoLocal, will work by dispatching workers from its Spark delivery network to its merchants’ stores to pick items before delivering them to shoppers.
Spark’s coverage has doubled in the last year to over 500 cities in the US.
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“We were looking at different potential revenue streams, ways to commercialize the capabilities and scale that Walmart has, and so we’ll think about what that means as this program unfolds,” Walmart senior Vice President of GoLocal Tom Ward said.
Walmart is yet to give any specifics about GoLocal fees however said it would be “competitively priced.”
The retail giant has launched the service just before an upcoming holiday season that will likely see a similar situation to last year as the Delta variant rears its ugly head in the US.
There are rumoured to be around 5 million more parcels needing to be delivered per day according to UPS chief Carol Tomé.
UPS delivers items from both Amazon and Walmart and has recently announced it is exploring rapid local delivery without the high prices that its rival, FedEx offers.