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07/12/2022

Walmart Purchasing Electric Delivery Vehicles

The retailer is using the new technology to enhance its efforts to deliver online orders to shoppers.
Greg Sleter
Associate Publisher/Executive Editor
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Walmart LDV

Walmart is purchasing 4,500 all-electric delivery vehicles that will be used to deliver online orders beginning in 2023. 

The American-made lifestyle delivery vehicles (LDV) from Canoo are constructed on a proprietary multi-purpose platform that integrates the motors, battery module and other critical driving components. 

According to Canoo, LDVs are engineered for high frequency stop-and-go deliveries and speedy vehicle to door drop-off, including grocery and food/meal delivery. The vehicles feature a customized interior that is designed for small package delivery, at competitive per stop economics. The modular design and 120 cubic feet cargo volume are adaptable to evolve with customer needs, which contributes to a decreasing per unit investment over time.

"Walmart's massive store footprint provides a strategic advantage in today's growing 'need it now' mindset and an unmatched opportunity for growing EV demand, especially at today's gas prices,” said Tony Aquila, investor, chairman and CEO of Canoo.

Canoo's electric vehicles will be driven by Walmart associates and used to deliver online orders as well as the potential to be used for Walmart GoLocal, the retailer's delivery-as-a-service business.

"Today, the closest Walmart to customers is right in their pockets – it's the Walmart app. By continuing to expand our last mile delivery fleet in a sustainable way, we're able to provide customers and Walmart+ members with even more access to same-day deliveries while keeping costs low,” said David Guggina, senior vice president of innovation and automation, Walmart U.S.

In addition to dedicated fulfillment centers, Walmart uses 3,800 of its stores that are located within 10 miles of 90% of the U.S. population, to fulfill online orders. The retailer does this using a combination of Walmart associates, independent contractors driving on the Spark Driver Network, third-party delivery service providers, and in some locations, autonomous vehicles and drones, to make deliveries. Through their expansive last mile delivery network, Walmart said it can reach 80% of the U.S. population with same-day delivery on a growing assortment of items.

Beyond the initial 4,500 LDVs being purchased by Walmart, the retailer has the option to purchase up to 10,000 vehicles. Walmart and Canoo said they plan to begin advanced deliveries to refine and finalize vehicle configuration in the Dallas-Fort Worth metroplex in the coming weeks