walmartbought a new fleet of 100% electric vehicles from a start-up Canou.
- Walmart employees will drive the vehicles to fulfill online orders.
In an effort to bolster its online delivery capabilities, Walmart has purchased a fleet of 4,500 electric delivery vehicles from
Walmart employees and Walmart GoLocal operators will use the vehicles to deliver online orders. Canoo will begin producing these “lifestyle delivery vehicles” in the fourth quarter of 2022. In a blog post, Walmart said shoppers can expect to start seeing the vehicles in 2023, but the team at Walmart must first “refine and finalize the vehicle configuration in the Dallas-Fort Worth metroplex in the coming weeks.”
The retailer described the van as “optimized for sustainability
Walmart has already struck deals to use electric delivery vehicles from GM’s BrightDrop and Ford.
Walmart’s latest news could be seen as a response to Amazon’s 2020 unveiling of electric delivery vehicles. The two retail giants have long been in fierce competition, with Amazon overtaking Walmart as the largest retailer in the United States for the first time in 2021. In light of this growing rivalry, Walmart began using 3,800 stores as online distribution centers. As competition with online rival Amazon continues to heat up, the brick-and-mortar company is touting its ability to “reach 80% of the US population with same-day delivery on a growing assortment of items.”
“Today, the closest Walmart to customers is in their pockets – it’s the Walmart app,” said David Guggina, senior vice president of innovation and automation at Walmart US, in a communicated. “By continuing to expand our last-mile delivery fleet in a sustainable way, we’re able to offer customers and Walmart+ members even greater access to same-day deliveries while keeping costs low.”
Like Walmart, Canoo is headquartered in Bentonville, Arkansas. The electric vehicle company was founded in 2017 as Evelozcity. Walmart’s move could prove to be a turning point for cash-strapped Canoo. In May 2022, The Verge reported that the company had run out of cash to the point of announcing that it could probably only afford to operate for another quarter.
“Walmart’s massive store footprint provides a strategic advantage in today’s growing ‘Need Now’ mindset and an unparalleled opportunity for the growing demand for electric vehicles, especially at today’s market prices. gasoline,” Canoo CEO Tony Aquila said in a statement.