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Skipcart ends delivery agreement with Walmart

Last-mile delivery service pulls out of deal servicing 126 stores

Michael Browne, Executive Editor

February 24, 2020

2 Min Read
Walmart-delivery-Skipcart.jpg
In 2019, Walmart expanded same-day grocery delivery to 1,600 stores.Walmart

Delivery service Skipcart has ended its grocery delivery agreement with Walmart after just over a year. A Bloomberg report on Feb. 21 said the Boerne, Texas-based company cited losses and an inability to make a profit with the deal.

According to Bloomberg, Skipcart notified Walmart on Jan. 31 that it would terminate the delivery agreement as of April 30; that date has since been moved up to March, and the retail giant has been reassigning delivery from stores previously covered by Skipcart.

Skipcart serviced 126 Walmart stores in 32 states, making about 50,000 deliveries per month in smaller markets. An on-demand platform, Skipcart specializes in last-mile solutions for retailers offering pickup service but lacking same-day delivery.

Skipcart CEO Ben Jones told Bloomberg that his company was losing money “hand over fist” with Walmart and that it would rather focus on delivering for restaurants, which are easier to complete and make more money.

“The grocery model does not work,” Jones said. “It doesn’t work today, and it’s not going to work six months from now. We’re all losing money.”

Skipcart is the latest delivery service that has pulled out of deals with Walmart in the past two years. Last year, Walmart ended delivery partnerships with Deliv, Uber and Lyft and abandoned a test in which Walmart employees delivered groceries to customers after their regular shifts. Last fall, the company rolled out its Delivery Unlimited subscription service to 1,400 stores.

Related:Walmart to roll out unlimited grocery delivery

During fiscal 2019, Walmart expanded same-day grocery delivery to approximately 800 stores and free grocery pickup to more than 2,100 stores in the United States. By the end of 2019, the retailer planned to have same-day grocery delivery available at 1,600 stores and free grocery pickup at 3,100 stores. The company said the expansion will enlarge its online grocery coverage of the U.S. population to 50% for same-day delivery and almost 80% for grocery pickup.

About the Author

Michael Browne

Executive Editor, Supermarket News

Michael Browne joined Supermarket News in 2018 after serving in managing and executive editor capacities at leading B2B media brands including Convenience Store NewsLicense Global and Travel Agent. He also previously served as content production manager for print and digital in the Business Intelligence division of Informa, parent company of Supermarket News and Nation’s Restaurant News.

As executive editor, Mike oversees the editorial content of supermarketnews.com as well as the monthly print publication. He also directs all content-based brand-related projects including the annual Top 75 Retailers report, Category Guide, Retailer of the Year, research surveys and special reports, as well as podcast and webinar content. Mike has also presented and moderated at industry events.

In addition to the positions mentioned above, Mike has also worked as a writer and/or editor for special projects at American Legal Media (ALM), managing editor for Tobacco International, special projects editor at American Banker • Bond Buyer, and as production editor for Bank Technology News and other related financial magazines and journals published by Faulkner & Gray.

A graduate of Fordham University, Mike is based in New York City, where he was born and raised.

Contact Mike at [email protected] or follow him on Twitter and LinkedIn.

 

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