Walmart Ends Partnership With Google-backed Delivery Service Deliv

Walmart Grocery Delivery Service
An employee pushes shopping carts outside a Walmart store in Chicago, Illinois (Photo: Reuters)

Walmart Inc has just officially announced that it has ended its partnership with the Google-backed delivery service company, Deliv. The announcement may become a huge setback for the company, which is struggling to catch up with the online retail giant, Amazon, who has also recently started to deliver groceries to its customer's homes. Walmart's partnership with Deliv was one of a key element in its efforts to provide its customers with a same-day grocery delivery service.

Last year, the Arkansas-based retail company started its partnerships with various third-party firms to increase its reach by providing door-to-door delivery. Walmart already offers the service in more than 100 cities across the United States. It initially tried to partner with established courier companies, such as Uber and Lyft, but that move apparently didn't pan out. Walmart then attempted to use its own employees to deliver its groceries and other products, but that failed as well.

According to insiders, Deliv has already serviced Walmart a 90-day termination notice in late January. Deliv was Walmart's earliest partners that helped it launch delivery programs in states like Florida and California. In a recent statement, Walmart confirmed that it did receive the company's termination notice, but it assured the public that it still had a number of third-party partners to ensure that its delivery services would continue. In fact, Walmart stated that it still had contracts with seven other delivery companies, including Postmates and DoorDash.

Those that were familiar with the company's partnership with Deliv revealed that the initial problem was due to the time it took for stores to turn over customer's orders. According to former Deliv delivery drivers, some of them had to wait for an hour or more just to collect the grocery items that their customer's had ordered. The delay was reportedly due to the fact that store employees prioritized walk-in customers over delivery drivers in most cases. This apparently caused a lot of disgruntled delivery drivers and customers.

Walmart's online grocery ordering system was also blamed for the long-delays and was seen as a huge problem for both the retailer and the delivery service firms. When asked for a statement started the cause of their termination, Deliv declined to comment. Walmart, on the other hand, released a statement that indicated that the decision to end the partnership was a mutual one.  The company praised Deliv's delivery systems but stated that it was just not the "best fit" for their current delivery program.

Despite the termination of their biggest delivery service provider, Walmart is still optimistic of its future in door-to-door grocery delivery. The company stated that it plans to offer the service in more than 1,600 out of the 5,000 stores and warehouse clubs it has spread around the country. 

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