Everyone wants convenience and physical trips to the grocery store don’t always fit into that category. In the age of same-day deliveries, instant laundry service and GrubHub, Walmart is taking advantage of the wave by expanding their same-day delivery service to 100 cities.
USA Today reports the company will now extend their same-day delivery service, originally provided to residents of Phoenix, Dallas, Orlando, Tampa, Denver, and San Jose. Walmart was competitively coerced into upping their ante. After sighting Amazon’s final quarter sales last year, the company knew it was time to do more.
The company is looking to expand to more than 40% of U.S. households by the end of the year. Minimum delivery will cost $30 with a flat shipping fee of $9.95.
However, just last November, Amazon removed the delivery fee for residents of New York City and changed their shipping fee for orders below $35 to $4.99.
In the eight months since Amazon’s acquisition of Whole Foods, they’ve managed to shake up the market. The company’s decision to venture into the brick-and-mortar grocery world gave them a leg up in comparison to some competitors like Walmart and Target. This past holiday season, the company had their best holiday growth quarter in eight years at $60.5 billion.
As early on as August of 2017, superstore Wal-Mart had identified growing competition in Amazon and began strategizing. The largest retailer in the world, it had no worries. It topped Fortune 500 last year with $123 billion in revenue but Amazon is projected to reach $200 billion this year. So it was now or never.
But this is not the end. Because Amazon is solely a web platform, it doesn’t have an association with certain milieus. It might take a little more than metropolis expansion to get the big city folks spending.
Nonetheless, Walmart's $30 minimum and $10 shipping fee will have customers spending twice as much, raising their e-commerce sales and sales overall.