Wal-Mart is taking direct aim at rival Amazon's Prime Fresh same-day delivery service. Bobbi Rebell reports.
Wal-Mart is taking direct aim at rival Amazon's Prime Fresh same-day delivery service. The world's largest retailer is testing out a program where it will partner with ride hailing services Uber and Lyft for same-day online grocery deliveries. Wal-Mart will start testing the deliveries within the next two weeks in Denver and Pheonix. The move comes on the heels of another pilot program from its Warehouse unit Sam's Club with startup Deliv, in Miami, that started in March. Wal-Mart will charge customers a delivery fee of $7 and $10. Walmart store staff puts the order together, and the ride hailing services make the delivery. Online groceries are a $10.9 billion industry in the United States, according to market research firm IbisWorld. The market is expected to grow 9.6 percent annually through 2019. That's why retailers are stepping up their game, according to PwC's retail and consumer sector leader Steven Barr: (SOUNDBITE) STEVEN BARR, RETAIL AND CONSUMER SECTOR LEADER, PWC, (ENGLISH) SAYING: "I think, this is really more of a pilot to see if idea will engage with the consumer, and, I think we will ultimately get to a point that, if it does work, especially with tthe millenials and the gen z crowd, that the store-based retailers will probably adapt their own delivery systems, and not just leveraging the sahring economy through the Ubers and the Lyfts. Thet's where, I htikn, it will go long-term." Retailers are still experimenting with different approaches to grocery delivery. For example, Wal-Mart is also expanding it's online order options to offer grocery deliveries within two-days for a minimum annual fee of $49.