Wal-Mart Teams With Uber And Lyft To Deliver Groceries To Your Home

Wal-Mart Stores, Inc. WMT has partnered with ride-sharing firms Uber and Lyft to test grocery delivery service for its online shoppers, a move that aims to compete with the last mile delivery program of Amazon.com, Inc. AMZN.

Walmart is expected to start tests of grocery delivery through Uber and Lyft within the next two weeks in Denver and one other market, Michael Bender EVP and Chief Operating Officer, Walmart Global eCommerce, said on a blog post.

The retail giant has already started a similar pilot program with Deliv for its Sam's Club members in Miami.

Here's how it works.

When a customer places an online order for groceries and chooses a delivery window, Walmart staff may prepare the order and request a driver from Uber or Lyft to come to the store, pickup the order and deliver at customer's premises. The customer, who will be notified about the mode of delivery, pays only the $7-10 delivery charge.

Walmart, under pressure from Amazon, has been prepping up its online services to compete with the online retail giant.

Walmart recently announced an unlimited two-day shipping on the lines of Amazon Prime. The price of the e-commerce subscription is also cut to $49 from $50 a year versus Amazon Prime, which costs $99 annually.

"We'll start small and let our customers guide us, but testing new things like last-mile delivery allows us to better evaluate the various ways we can best serve our customers how, when and where they need us," Bender concluded.