DoorDash delivery is reportedly on its way to terminate its four-year partnership with Walmart. The online delivery platform will stop delivering groceries for Walmart by the end of September, according to TechCrunch.
Business Insider stated that those in the know revealed that DoorDash delivery is planning to work on building its customer base and will focus on long-term customers to drive business goals. A Walmart spokesperson also told Insider that the rumors are true and that the companies will be parting ways.
The DoorDash-Walmart Partnership
“We have agreed to part ways,” Walmart said in an email on August 19. “We’d like to thank DoorDash for their partnership and support of our customers the past several years.” However, the retail giant will continue to deliver goods to its customers by working with multiple partners.
The world’s largest company by revenue, Walmart revealed that it is heavily reliant on Spark, the platform for self-employed drivers, to drive goods and business. As of now, Spark is capable of serving more than 80% of its US customers and has 7,000 pickup points.
Walmart first collaborated with DoorDash delivery in 2018. At the time Walmart wanted to reach at least 40% of its customers across the US. Walmart has greatly benefited through the DoorDash-Walmart partnership. Other than delivery, the retailer used the delivery service’s bank of personal shoppers to assist its customers. Personal shoppers, who had to undergo a mandatory three-week training, were taught how to shop for meat and produce in an intensive program before they could service Walmart customers.
As of 2021, Walmart entered into direct competition with other delivery programs with the launch of Walmart GoLocal, which delivers goods to customers of different businesses.
DoorDash and Future Ambitions
Speaking about the Walmart deal in a statement, a spokesperson said, “We’d like to thank Walmart for their partnership and are looking forward to continuing to build and provide support for merchants in the years ahead with our leading marketplace and platform offerings.”
DoorDash is said to have taken the first step in canceling the DoorDash Walmart partnership as it feels the conditions were “no longer mutually beneficial.” Last week, DoorDash had confirmed that it has entered into a deal with Facebook Marketplace, wherein they are testing a service to allow the delivery to pick up and drop off Marketplace items for customers. The service, which is currently available in many US cities, is for items that can fit in the trunk of a car and must be located no further than 15 miles away. DoorDash delivery drivers will make deliveries within 48 hours or less.
DoorDash’s collaboration with Facebook Marketplace will help widen its local delivery options. As of now, Facebook Marketplace only lets larger items be delivered through Dolly, an on-demand delivery company. But Dolly is limited to 45 or more cities across the United States. Meta allows Marketplace sellers to ship out items directly to buyers as well. The new partnership will help bridge the gap and attract more customers for both companies.
The recent partnership is a significant step in DoorDash’s ambitions to be much more than a food delivery service. Over the last few months, it has already started delivering toiletries, cosmetics, and other household essentials. The company has also partnered with popular retailers like Sephora, JCPenney, and Bed Bath & Beyond, amongst others.
In a statement, the delivery company wrote, “DoorDash is always thinking about new ways to provide for the communities we serve. With access to unparalleled convenience and opportunity through a platform, we continually explore and test new innovations.”
Since March 2022, DoorDash has also been testing a new feature wherein customers can return goods to the post office, UPS, or FedEx.
