Walmart Now Offers Last-Mile Delivery Service To Other Businesses

Walmart Inc WMT is opening its in-house delivery platform to others merchants for their last-mile deliveries, tapping a segment dominated by FedEx Corp FDX and United Parcel Service Inc UPS.

What Happened: The Bentonville, Arkansas-based retailer's new service, Walmart GoLocal, will be open for businesses of all sizes to get their goods delivered to customers. Walmart will deploy its in-house delivery platform to allow independent contractors who are out delivering Walmart groceries and other merchandise to make additional deliveries as well.  

Walmart GoLocal will join a host of other rivals, including the one from Target Corp TGT’s Shipt, which also handles last-mile deliveries.

See Also: Is 'A Day Of Reckoning' Coming For FedEx, UPS?

Why It Matters: FedEx and UPS usually have strong last-mile delivery networks but more players are mushrooming with the same delivery capabilities, including e-commerce giant Amazon.com Inc AMZN, which offers faster options. 

Target’s Shipt does same-day deliveries from its stores and others. Others such as DoorDash Inc DASH and Uber Technologies Inc UBER employ gig workers to fulfill orders for different merchants.

Price Action: Walmart shares closed 0.72% lower at $150.45 on Monday.

Photo: Walmart Corporate via Wikimedia