Walmart’s new GoLocal program will use drones to empower smaller retailers and to scale Walmart’s online store. This could help them over take Amazon.
As we have previously forecast, Walmart is hoping to scale its offerings with drones. The commercialization of the drone program will allow local retailers to cash in on faster delivery. When delivery speed increases, so does convenience of shopping. If Walmart can offer more “local” options to purchase and speed up delivery time… Walmart could easily overtake Amazon thanks to their drone program.
Last week, Walmart announced the launch of its GoLocal platform. Walmart is planning to use its distribution service, GoLocal, to empower more local retailers. With the GoLocal program, they can use their system as a delivery for service program. Walmart started their jump into faster delivery about 3 years ago.
Walmart’s move makes a lot of sense. If they can use their robust delivery network, they can offer these services to allow local retailers to make faster deliveries. With faster delivery, they can essentially scale and empower more retailers to offer faster delivery times. With faster delivery times, Walmart very well could overtake Amazon on delivery time. As Amazon has sped up their deliveries using traditional channels, the Amazon Prime Air program has largely failed to launch. (pun intended)
According to DroneDJ, “Walmart believes it is uniquely positioned to execute drone deliveries because its stores are located within 10 miles of 90% of the US population.” Currently, Walmart can service 70% of the entire population that lives within 2 hours of over 3,000 Walmart stores. Drone pilots will remember when Walmart launched their drone delivery program with DroneUp. Albeit this delivery program was vastly different from the centralized offerings of Amazon and other delivery companies. This flexibility may allow Walmart to utilize their drones, fleet of vehicles and other distribution networks to vastly speed up delivery of numerous items.
Currently, it seems the GoLocal platform is partnering with enterprise clients. Albiet, Walmart is inviting small businesses and other potential partners to apply to become a part of the Go Local Platform. Walmart stated GoLocal is designed
“to be customizable for merchants of all sizes and categories so they can focus on doing what they do best, leaving delivery speed and efficiency to us.”
Walmart’s President and CEO chalked up Go Local’s value to:
“In an era where customers have come to expect speed and reliability, it’s more important than ever for businesses to work with a service provider that understands a merchant’s needs. Walmart has spent years building and scaling commerce capabilities that support our network of more than 4,700 stores and we look forward to helping other businesses have access to the same reliable, quality and low-cost services.”
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