Walmart Ups the Ante in Grocery Delivery Competition

Walmart has a new weapon in the grocery delivery wars against other top e-commerce rivals.

Walmart online shoppers can subscribe to a US$98-per-year “Delivery Unlimited” plan that aims to siphon customers from Amazon’s Whole Foods and Target’s home delivery programs.

Online grocery shopping is growing steadily as a key revenue generator and customer draw. The food division was critical in boosting Walmart’s e-commerce performance in the first quarter of this year by 37 percent.

Delivery Unlimited is an expansion of the company’s existing pickup and delivery offerings, which include free delivery to store located near the customer, or home delivery for a $9.95 fee per order.

This new annual subscription gives Walmart’s online shoppers a third option. For $98 a year or $12.95 a month, Walmart customers can skip the per-order fee. They can place their order on Walmart’s site or app and select a window for their order’s delivery.

Overall, the new service offers significant additional convenience for a modest cost, said Charles King, principal analyst at Pund-IT.

“It will be particularly attractive for customers who shop at Walmart more than four or five times per month, like time-pressed families with substantial grocery needs,” he told the E-Commerce Times.