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Walmart’s Online Grocery Expansion Gets Delivery Boost From Postmates Couriers

11:16 AM, Apr 10, 2018 — Walmart’s (WMT) expanding online grocery delivery service will be using Postmates couriers to send orders to customers as the world’s biggest retailer looks for more ways to appeal to shoppers who are increasingly taking their business online.

Postmates “will help power” Walmart’s deliveries of groceries that are ordered online starting Tuesday in Charlotte, North Carolina, the companies said in a statement. The service will expand to reach more than 40% of US households over the coming months.

The tie-up with San Francisco-based Postmates, with its fleet of 160,000 couriers, builds on Walmart’s move last month to expand its grocery delivery service, which has a $9.95 fee and a minimum order of $30.

Brick-and-mortar retailers have been looking for more ways to challenge the dominance of e-commerce giant Amazon.com (AMZN), which entered the grocery business last year with its acquisition of Whole Foods Market.

“Customers are busy, they are managing jobs, soccer practice, dance lessons and social schedules,” Mark Ibbotson, executive vice president of Walmart US’s central operations, said in the statement. “We are on a mission to do more than keep a little extra money in their pockets.”

Groceries will be picked by Walmart personal shoppers and delivered by a member of the Postmates Fleet, and can arrive the same day, the companies said. Walmart said in March it was expanding online grocery delivery to more than 100 metro areas from six markets currently, and was planning to add 1,000 more stores to its online grocery pickup service.

Companies: Walmart Inc.
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