Walmart’s New GoLocal Delivery Service Solution Targets Outside Retailers Big And Small

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Walmart’s New GoLocal Delivery Service Solution Targets Outside Retailers Big And Small

Walmart
WMT
Inc. is taking another page from Amazon’s
AMZN
playbook. The Bentonville, Ark.-based retail behemoth said today that it’s launching Delivery as a Service, a new revenue stream that will leverage the world’s biggest retailer’s last mile capabilities.

Called Walmart GoLocal, the service extends Walmart’s expertise in delivering goods to customers from any size business. “In an era where customers have come to expect speed and reliability, it’s more important than ever for businesses to work with a service provider that understands a merchant’s needs,” said John Furner, president and CEO, Walmart U.S., adding, “Walmart has spent years building and scaling commerce capabilities that support our network of more than 4,700 stores and we look forward to helping other businesses have access to the same reliable, quality and low-cost services.”  

The retailer is commercializing its delivery platform, beginning with Delivery as a Service, helping businesses of all sizes bring their products closer to their customers’ doorsteps. Walmart GoLocal is poised to be a top white label delivery service provider and furthers the retailer’s strategy to build alternative revenue streams and profit pools.

The white-label Delivery as a Service offering empowers businesses to grow using Walmart’s delivery capabilities and nationwide coverage at competitive pricing. This includes delivery on a range of assortments, including those with size and complex requirements, as well as the flexibility to meet varying timelines. The business will also rapidly expand to offer additional innovative offerings.

 “We’ve worked hard to develop a reliable last mile delivery program for our customers,” said Tom Ward, senior vice president, last mile, Walmart U.S. “Now, we’re pleased to be able to use these capabilities to serve another set of customers – local merchants. Be it delivering goods from a local bakery to auto supplies from a national retailer, we’ve designed Walmart GoLocal to be customizable for merchants of all sizes and categories so that they can focus on doing what they do best, leaving delivery speed and efficiency to us.”

“We’re pleased with the early momentum of Walmart GoLocal and have already established a number of contractual agreements with national and enterprise retail clients and is currently accepting select new merchant partners at www.walmart.com/GoLocal. Right now, Walmart GoLocal includes white-label delivery on a range of items and plans to rapidly expand to offer additional innovative offerings,” a Walmart spokeswoman told me. “[Walmart GoLocal] is built on our existing delivery network and will grow as Walmart’s capabilities grow.”

The appeal to small businesses is obvious. What’s the attraction for big businesses? “Walmart GoLocal’s strengths lie in our local footprint and digital connection,” the spokeswoman said. “We have almost 5,000 locations within 10 miles of 90% of the population. Because of this, Walmart GoLocal already has a strong presence in rural and suburban areas where delivery providers aren’t that dense. Our digital growth, physical scale and delivery platform will help businesses get the benefits of our lower costs, coverage, capacity and capabilities.”

 This business is an important part of the company’s overall strategy, which includes diversifying its revenue streams and profit pools with initiatives like Walmart Connect and Walmart Fulfillment Services. Its launch comes weeks after the retailer announced plans to begin offering technologies and capabilities to help other businesses navigate their own digital transformation.

After successfully building, testing and scaling its proprietary technology and capabilities, Walmart last month said it was ready to share its tools with the rest of the world. The technology and efficiencies that have fueled Walmart’s growth in recent years such as buy online, pickup in store, and mobile checkin, will become available to small and mid-size retailers.

As part of this effort, Walmart announced a strategic partnership with Adobe to integrate Walmart’s Marketplace, online and in-store fulfillment and pickup technologies with Adobe Commerce 
ADBE
.

Through the Adobe Commerce platform, retailers and brands will be able to use Walmart’s unique cloud-based services to offer seamless pickup and delivery to their customers. Businesses will be able to reach new consumers on Walmart’s fast-growing Marketplace where they can leverage Walmart’s fulfillment services to offer 2-day shipping nationwide, all while improving customer experience and operating more efficiently.

Before pushing out the capabilities to the market, Walmart wanted to test them and build scale. The retailer has been using some of them – including buy online and pickup in store – for a decade. Walmart has also been layering on its own delivery capabilities. As store pickup and other omni experiences become more popular with consumers, Walmart is offering to help other retailers, and make a profit.

“Walmart’s GoLocal launch signals the next phase of its platform monetization push so you could say that Walmart is taking a page from Amazon from that perspective,” said Carol Spieckerman, president of Spieckerman Retail. “Just last month, Walmart announced that it would bring cloud-based fulfillment capabilities to other retailers through its partnership with Adobe.

“Clearly, Walmart is determined to realize a return on its considerable clicks-to-bricks investments,” Spieckerman said. “Walmart obviously thought through potential competitive concerns as well by stating that GoLocal will be a ‘white label’ solution. Like Amazon, Walmart is willing to forfeit brand association to expedite onboarding and scale solutions. I expect a series of similar launches to follow as Walmart harnesses its platform power and as competing retailers seek to level up last-mile capabilities.”

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