Deliv to power same-day grocery delivery for Walmart in San Jose

Sarah Perez
Walmart is further expanding into same-day delivery with the help of its existing delivery partner, Deliv.

Walmart is further expanding into same-day delivery with the help of its existing delivery partner, Deliv. The companies today announced they will now be working together to power same-day grocery delivery in the San Jose area, where users will be able to shop online then schedule deliveries from 8 AM to 8 PM, seven days a week.

Deliv and Walmart have been working together for some time, including on grocery delivery. For instance, Deliv was one of the partners for Walmart's tests of last-mile grocery delivery last year, along with Lyft and Uber.

It also more recently partnered with Walmart and August Home on tests of in-home delivery of packages and groceries. Amazon rapidly followed with the launch of its Cloud Cam and Amazon Key service, but Walmart's differentiator is that the Deliv driver would actually put your groceries away for you, as needed.

But keyless entry and same-day delivery are only a couple of tests Walmart is running while it tries to get a handle on the economics of online grocery shopping. While a number of startups are operating in this space, including Instacart and Shipt, as well as Walmart's top rival with Amazon Fresh, Walmart's heaviest focus has been on online grocery shopping combined with curbside pickup.

The retailer has insisted for some time that pickup makes sense for its customer base, who are more concerned with the cost of groceries rather than the convenience of doorside delivery, which tends to be expensive.

But that doesn't mean Walmart will ignore the same-day delivery market. In addition to its ongoing tests, it also acquired delivery service Parcel in October, to roll out same-day delivery in New York City.

The grocery market is huge, and online's portion of that is growing. Explained the retailer today in discussing the San Jose launch, consumers are expected to spend nearly one trillion dollars on groceries this year according to research from Fung Global Retail & Tech. In addition, around 90 percent of consumers shop for food and household supplies on a weekly basis.

With the shift to online, e-commerce grocery delivery has seen significant growth. Online grocery sales are forecasted to account for as much as 20 percent of all grocery sales by 2025, Walmart noted.

“Customers are busier than ever – they’re looking for ways they can free up time on their calendars and with Deliv, we’re here to help,” said Sylvester John, senior director of E-commerce Operations at Walmart U.S., in a statement. “After working with Deliv on other initiatives, we know they share our obsession with customer service and recognize the need to provide unparalleled value and convenience to our shared customers," he added.

San Jose has been a test market for year for many of Walmart's e-commerce experiments, including grocery delivery back in 2011 and same-day delivery ("Walmart to Go") in 2012.

To use the new Deliv-powered service, customers will shop online via walmart.com/grocery, then select a delivery window at checkout. Walmart's personal shoppers will pack the groceries, then Deliv drivers pick them up from the local store to deliver to customers' homes. Customers will also receive a notification when deliveries are on their way. Deliveries are not left unattended at doorsteps, however - Walmart requires a signature on receipt.

The San Jose service area includes Campbell, CA; Cupertino, CA; Los Gatos, CA; Milpitas, CA; San Jose, CA; Santa Clara, CA; Saratoga, CA; and Sunnyvale, CA, Walmart says.

“Walmart is a tremendous brand, dedicated to delivering the greatest possible experience to its shoppers. This includes offering greater delivery options for every type of purchase so that people can shop when and how they want,” said Daphne Carmeli, Deliv CEO and co-founder, in a statement. “We are delighted to work with Walmart on another great initiative. Together, we will deliver the new era of grocery e-commerce.”