Walmart has yet again expanded their transportation supply chain, now extending their delivery services to businesses of all sizes. News released in August reported a last-mile delivery service – Walmart GoLocal – to be implemented in 2022 with assistance from Spark, an independent contractor for qualified delivery drivers. The expertise of transportation and delivery capabilities has developed since their launch into the industry in 2018, when Walmart first paired with Spark to expand their e-commerce influence. Within the three years of being in the e-commerce market, they introduced 160,000+ products to 3,000+ stores that would deliver to a growing statistic of 70% of the US population. Spark’s role in the contract is to find available delivery positions from local Walmart stores and match workers to perform the job. The new platform will expand Spark’s services to third-party, local merchants, giving customers delivery capabilities from their favorite local stores. These smaller organizations will in turn be provided a larger consumer population, without directly involving themselves into the e-commerce industry. Walmart GoLocal is committed to “help you meet varying service level demands, reaction time specifications, and regulatory compliance needs” for small businesses, nationwide retailers, and peer-to-peer deliveries.
The white-label delivery process will allow customers to continue relations with their favorite brands, and organizations an opportunity to use their expertise of products while outsourcing their transportation supply chain. The efficiency Walmart offers will promote competitive pricing, but Walmart has stated that costs will “be evaluated based on the specific needs of the client.” The nationwide service will rely on the economy of individual regions, but this expansion of service has required addition fulfillment centers and warehouses to be built around the nation, adding revenue streams to Walmart’s growing delivery services. And while there is currently a nationwide shortage of commercial delivery drivers, the platform will rely on local gig workers to fulfill the positions, also encouraging growth in local economies.
Walmart GoLocal’s initiative follows the company’s strategy of diversifying revenue. Walmart has always worked to ensure responsibly produced products and services; the GoLocal platform will diversify suppliers to include organizations of all sizes. The overall effect on the economy should have a positive outcome, assuming corporate capabilities will not differ due to future environmental or social changes (a.k.a. the COVID-19 pandemic).
Authored by: Katherine Christians
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