DoorDash and Walmart to call off delivery partnership from next month

Customers in the US will not be able to get their groceries from Walmart delivered through DoorDash from September. The partnership between the food ordering and delivery platform and the retail giant comes to an end after four years, according to internal sources close to the matter reported Insider. DoorDash had notified Walmart about its decision to end the partnership earlier this month. The company decided to call off the partnership due to it being “no longer mutually beneficial” and to “focus on its long-term customer relationships,” a source said.

“We’d like to thank DoorDash for their partnership and support of our customers the past several years,” a Walmart spokesperson said.

“We’d like to thank Walmart for their partnership and are looking forward to continuing to build and provide support for merchants in the years ahead with our leading Marketplace and Platform offerings,” DoorDash spokesperson added in a statement to The Verge.

The two companies partnered together in 2018, when DoorDash began to deliver goods ordered through the Walmart website to customers. The service had first started in Georgia before expanding to several other states in the US. The move had come in the same year that Walmart had dropped Uber and Lyft for grocery delivery deals. With the partnership ending, it is unclear whether DoorDash will resume ordering services for Walmart through its app which it had halted to avoid conflict during the partnership.

Many analysts had been expecting the two to part way sooner or later with Walmart investing significantly in its own delivery solutions. The company has been investing heavily into its own delivery service platform, Spark. The platform now accounts for 75 per cent of its deliveries and services 84 per cent of households in the US, a Walmart spokesperson had stated. The company is also busy building GoLocal, a white label last mile delivery solution that Walmart hopes will help it better compete against Amazon.

DoorDash has also increased its non-restaurant partnerships for grocery and non-food item delivery with smaller chains. DoorDash currently controls 59 per cent of the food delivery market share in the US and is the largest food delivery service in the country.

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