Walmart's Fast Delivery Push: Can Small Orders Make Money?
Walmart (WMT) is expanding its store-fulfilled delivery service, which allows customers to receive their orders in under 30 minutes. The service has seen a 40% growth in the US, with Walmart reporting that this increase covers broader store-fulfilled delivery.
The company's goal is to offer convenient and fast deliveries, particularly for urgent needs such as forgotten groceries. To achieve this, Walmart uses nearby stores and existing inventory to serve customers quickly. This approach can improve driver utilization and reduce delivery time and mileage.
Walmart charges a $10 fee for 30-minute delivery, which provides the company with an additional source of revenue beyond merchandise sales. While small orders may not contribute significantly to gross profit, the convenience offered by this service can be valuable enough to justify the cost for customers.