In an effort to make shopping easier for their customers, Walmart is expanding its grocery business with a new delivery option. Using courier drivers from Uber, Lyft, and Deliv, Walmart is piloting a same-day grocery delivery service. Available for this delivery service are 30,000 food-related items and 10,000 general merchandise items from Walmart store shelves.
While Walmart has already been delivering groceries to the major cities of San Jose, Denver, and Miami using Walmart company grocery trucks, this pilot program will expand into new areas as well. Direct delivery from store to customer will be provided by delivery drivers from these companies to increasingly wider areas. By the end of July, Walmart’s same-day delivery service is expected to serve over 60 markets.
This service will allow Walmart customers to order items online (with a minimum order of $30) and select a two-hour delivery window. Employees of Walmart will collect the ordered items and then request a driver from Uber, Lyft, or Deliv to pick them up. Walmart handles the $7 to $10 delivery fee so that customers need not pay the delivery driver separately.
Interestingly, this business move delves deep into independent contractor territory. As indicated, Walmart claims responsibility for paying the delivery drivers, but the drivers are not Walmart employees. Using independent contractors as delivery drivers puts the pressure on Walmart to be careful with their IC business model so as to minimize risks and avoid situations like the Amazon Prime Now lawsuit over payment violations.
Incidentally, this new delivery service is rather similar Amazon’s Prime Now, which provides Prime members with free same-day delivery for a $15 minimum order. Most likely, this step by Walmart will continue to mold retail shopping and make same-day delivery the new standard.
If you feel that your business could benefit from adopting a competitive courier service, Consultech can help you set up a successful independent contractor business model. If you are currently working with independent contractors, Consultech can also help you by providing proactive and reactive services to ensure that your business is compliant with IC regulations.
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