Walmart just made a major investment in its last-mile delivery capabilities.
The bog-box retailer signed a deal with Canoo to purchase 4,500 electric delivery vehicles with the potential to expand to 10,000. These electric vans, called the Lifestyle Delivery Vehicle, will sustainably support Walmart’s last-mile delivery efforts for its online orders and help it achieve zero-emissions by 2040. The terms of the deal were not disclosed.
Walmart will become the first retailer to have access to the vehicles when they become available in 2023. Designed for last-mile delivery, the vehicles are designed to withstand multiple stop-and-go drop-offs, including for grocery. Walmart employees will operate the vehicles, which integrate motors, battery module and other driving components in a multi-purpose platform (MPP) design.
“We’re thrilled to continue diversifying our last mile delivery fleet with Canoo’s unique and sustainably focused all-electric technology which will provide our associates with safe, ergonomic delivery vehicles,” said David Guggina, SVP of innovation and automation at Walmart U.S. “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.”
The news marks Walmart’s latest investment in its delivery capabilities. In April, Walmart announced new pay raises for its truck drivers and a “Private Fleet Development Program” to train new associates. According to Walmart, truck drivers can make up to $110,000 in their first year with the company, with the chance to earn even more over time. According to Glassdoor data cited by Walmart, the average long-haul driver makes about $56,491 a year.
In November, Walmart announced a goal to hire 20,000 associates for supply chain roles. Walmart said that the average wage for supply chain associates is $20.37 per hour.
Last August, Walmart began using self-driving trucks to deliver groceries in Bentonville, Arkansas. Last September, Walmart said a partnership with Ford Escape hybrids with Argo AI technology would power Walmart deliveries in Miami, the District of Columbia and Austin, Texas.