In response to the growing demand for online shopping and deliveries, Walmart is reviving its efforts to involve its own employees in last-mile deliveries. The retail giant is looking to capitalize on the surge in online ordering activity that has become a hallmark of recent years.
Walmart initially ventured into employee-driven deliveries in 2017 when it began testing the concept of store employees delivering online orders to customers in select markets. Employees were given the opportunity to volunteer for delivery shifts after completing their regular work hours, with the added incentive of additional compensation.
However, this initial foray into employee-driven deliveries was short-lived, as the pilot program was quietly discontinued in 2018. The initiative failed to gain traction among employees, many of whom were hesitant to use their personal vehicles and insurance policies for these deliveries, as reported by Reuters.
Fast forward to the COVID-19 pandemic, which drastically accelerated e-commerce activity. The surge in online shopping prompted major retailers to ramp up their fulfillment and delivery capabilities, and Walmart was no exception. Walmart’s in-store fulfilled delivery sales nearly tripled over a two-year period, according to CFO and Executive Vice President John David Rainey during an earnings call in February.
To meet the increased demand for delivery services, Walmart has relied heavily on its Spark Driver platform, which comprises thousands of independent contractors serving as its primary delivery providers. However, as Walmart expands its local pickup and delivery services and welcomes new customers to Walmart GoLocal, its white-label delivery service, the need for additional capacity becomes evident.
Even a small percentage of Walmart’s 1.6 million associates in the U.S. participating in deliveries could have a substantial impact on the retailer’s delivery capabilities. As e-commerce continues to thrive, Walmart is eager to leverage its workforce to ensure timely and efficient last-mile deliveries for its customers.
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