Walmart has signed a definitive agreement with Canoo, a high-tech innovative mobility company, to acquire 4,500 electric delivery vehicles, with the option to purchase up to 10,000 units beginning with the Lifestyle Delivery Vehicle (LDV). The vehicles will be used to carry and deliver online orders in a sustainable mode which will also contribute to Walmart’s goal to achieve zero-emissions by 2040. While the LDV is expected to begin hitting the road in 2023, the companies plan to commence advanced deliveries to process and finalize vehicle configuration in the Dallas-Fort Worth metroplex in the immediate future.
Bolstering Walmart’s last mile delivery fleet
Walmart is thrilled to continue diversifying their last mile delivery fleet with Canoo’s unique and sustainably focused all-electric technology which provides their associates with safe, ergonomic delivery vehicles, stated David Guggina, the senior Vice President of Innovation and Automation at Walmart U.S.
By continuing to expand their last mile delivery fleet in a sustainable mode, they can provide customers and Walmart+ members with ease of access to same-day deliveries whilst keeping the costs low.
Walmart utilizes 3,800 of its stores, which are located within 10 miles of 90 percent of the U.S. population, to fulfil online orders, in addition to dedicated fulfilment centres. The retailer does this using a combination of Walmart associates and independent contractors driving on the Spark Driver Network, third-party delivery service providers, and in some locations, drones, and autonomous vehicles, to make deliveries.
Short interest in Canoo mounted at 13 percent of outstanding shares, research firm S3 Partners stated, adding the leap has reduced mark-to-market profit for the short term by USD 58 million to around USD 100 million. The stock has dropped 70 percent of its value this year, as of last close, amidst the selloff in tech stocks and concerns around Canoo’s access to capital.
The acquisition was hailed as companies including FedEx Corp, Amazon Inc and United Parcel Service Inc pledged to shift their delivery fleets to EVs.
During the previous month, Walmart said that it was intensifying transportation pilots with the manufacturers of electric, hydrogen and natural gas-powered vehicles, including Cummins Inc and Daimler Trucks Freightliner
The retailer said that it has reserved 5,000 electric delivery vans with General Motors’ and commercial EV business, BrightDrop.
About Walmart Inc
Walmart opened in 1962 in Rogers, Arkansas under the visionary leadership of Sam Watson. From Walmart’s humble beginnings as a small discount retailer in Rogers, Ark., the retailer has opened thousands of stores in the U.S. and expanded worldwide. Through innovation, the company is creating a seamless experience to allow customers to shop anytime and anywhere, online and in stores. The company is creating opportunities and bringing value to customers and communities around the world. Walmart manages around 10,500 stores and clubs under 46 banners in 24 countries and eCommerce websites. The company employs 2.3 million people around the world.
From grocery and entertainment to sporting goods and crafts, they provide the deep assortment that their customers appreciate, and Every Day Low Price (EDLP) is the cornerstone of their strategy.
About Canoo Inc
Canoo Inc. operates as a mobility technology company. The Company specializes in cars, commercial vehicles for rental, minibuses and sharing services. Canoo assists customers in the United States. The Company has developed multi-Purpose platforms (MPPs) and digital ecosystems that are reinventing the automotive landscape with bold innovations in pioneering technologies, design, and a unique business model that extents the full lifecycle of the automobile. Canoo has considered a modular electric platform purpose driven to distribute maximum vehicle interior space that is customizable across all owners in the vehicle lifecycle to support a wide range of vehicle applications for businesses and consumers.