Walmart Inc. plans to make grocery delivery available to shoppers in parts of New York City, a market that the world’s largest retailer has struggled to capture over the years.
Starting late Tuesday, Walmart groceries will be available for delivery in parts of Brooklyn, Queens and the Bronx through Instacart Inc., a company that charges a fee to send gig workers to purchase items in local areas. stores and deliver them.
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Walmart does not have physical stores in New York. Instacart shoppers will shop at Walmart stores outside the city limits and then deliver those items to nearby homes, the companies said. The service will not be available on Manhattan Island.
Walmart has been working to expand its grocery delivery and in-store parking pickup capabilities during the pandemic, as the demand for such services increased and the company tried to keep pace Amazon.com Inc.
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Last year, Walmart partnered with Instacart to deliver groceries to a small number of cities in California, as well as Tulsa, Oklahoma. Walmart also works with other delivery partners, including DoorDash Inc. and Roadie Inc. With these companies, Walmart employees collect orders and then hand the shopping bags to delivery drivers.
Walmart and Instacart are also competitors. Instacart delivers groceries for Walmart rivals, including Wholesale Costco Corp. , Aldi and Target Corp. Walmart also has its own network of independent delivery drivers and opened it up to other companies last week. Meanwhile, Target is working to expand Shipt, a similar delivery service it owns.
“It’s a dynamic space big enough for multiple vendors and multiple business models,” a Walmart spokesperson said. “Obviously, the pandemic has accelerated things very quickly. “
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Walmart and Instacart have decided to expand their grocery delivery partnership to the New York metro area after testing in other urban areas attracted new shoppers, the Walmart spokesperson said. Walmart uses Instacart “where the stores aren’t as dense,” she said. “It’s about reaching more customers. “
A spokesperson for Instacart said the company had expanded its technology and operations to allow longer-distance deliveries, “allowing retailers to reach and deliver to customers who live further from brick stores and existing mortar “.
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About 90% of Americans live within 10 miles of a Walmart store, and walmart.com ships products nationwide. But in New York City, Walmart failed to gain a significant foothold for more than a decade, first with stores and then later with same-day delivery services.
Walmart offered grocery delivery to New York through its Jet.com until it discontinued the service in 2019. It launched JetBlack, a high-end fast delivery service in Manhattan, before phasing it out in 2020.
Write to Sarah Nassauer at [email protected]