Walmart goes big into online grocery delivery, challenging Amazon

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Though many companies, Amazon in particular, are now working to shorten the supply chain with grocery delivery, with this move Walmart gains greater control over its supply chain on the production side. Each delivery order must reach Walmart's $30 minimum, and customers pay a $9.95-per-order fee as well. Amazon also has spent over a decade trying to build up its AmazonFresh grocery delivery service, but so far seen limited success.

In February Amazon unveiled free two-hour delivery of Whole Foods purchases for Prime members in four markets - Austin, Cincinnati, Dallas and Virginia Beach. On Monday, Kroger followed suit with an announcement that it would expand the number of cities eligible for home delivery of groceries through Instacart. It's the service equivalent of putting cartons of milk in the back of the store.

Some of the benefits of the Walmart grocery delivery service include the ability to have items show up the same day customers order them.

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According to the Wall Street Journal article, Walmart also will look at using its Jet.com ecommerce subsidiary to offer fast grocery delivery in New York City and other metro areas where Walmart lacks a presence.

Over the past few months, Amazon has pushed hard to be your new favorite grocery store, buying out Whole Foods and aggressively expanding its delivery options.

In recent years, Walmart has expanded its curbside grocery pickup service whereby shoppers can order online and pick up their items from their auto in the store's parking lot.

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Walmart and Amazon's duel for retail dominion is showing little sign of slowing down. "With the help of our personal shoppers and third-party delivery services, customers can have quality groceries delivered right to their doorstep".

Shipt started delivering groceries from Publix Super Markets in 2015. In fact, such relentless endeavors have aided Walmart's US e-commerce sales to soar 23% in the fourth quarter of fiscal 2018. Soon to play in a market near you: unmanned delivery vans and descending drones. The retailer also plans to hire thousands of additional personal shoppers - all of whom will be required to complete a three-week training program learning how to select "the freshest produce and the best cuts of meat" for online grocery customers - this year.

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