DoorDash, Walmart Sever Delivery Deal

doordash, walmart, delivery, groceries, ended relationship

DoorDash and Walmart are severing their on-demand grocery delivery partnership, an ongoing deal since 2018 that was initially signed for the Atlanta metro area.

“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,” a Doordash spokesperson told PYMNTS on Friday (Aug. 19).

DoorDash felt it wasn’t a beneficial relationship for either company anymore, Seeking Alpha reported, citing a source without further specifics. Other news outlets attributed Business Insider to breaking the news and having unnamed sources.

Walmart was given 30 days’ notice and the partnership is supposed to end in September, Seeking Alpha reported.

Walmart didn’t respond to PYMNTS request for comment.

See also: Walmart Expanding EV Fleet as F&B Companies Seek Fulfillment Edge

Most of Walmart’s revenue in the U.S.comes through its grocery business, PYMNTS reported in July. The company ordered 4,500 electric vehicles from mobility company Canoo with the possibility of ordering up to 10,000. The Lifestyle Delivery Vehicles (LDVs) will be used for eCommerce deliveries as well as Walmart’s GoLocal white-label delivery-as-a-service option.

Read more: Report: Average Consumer Carries out at Least 2 Online Transactions a Day

Earlier this week, Walmart announced that its four-year-old Spark Driver platform for door-to-door delivery of groceries is now its largest delivery provider, fulfilling close to 75% of delivery orders.

DoorDash Drive is in the midst of testing a service that will deliver Facebook Marketplace items to buyers’ homes, Doordash confirmed. The new service is being piloted in several cities and if successful is expected to roll out to more locations. The delivery company is also testing a package return service that allows customers to return items to the post office, UPS or FedEx.

Related: DoorDash, Grocery Outlet Team on Same-Day Grocery Delivery

DoorDash and retailer Grocery Outlet partnered for delivery, PYMNTS reported Monday (Aug. 15). On-demand delivery from 398 Grocery Outlets will be available in California, Maryland, New Jersey, Oregon, Idaho, Nevada, Pennsylvania and Washington.