What: Walmart enters Doordash and Instacart territory by maximizing the profitability of its logistical infrastructure, while at the same time generating an additional revenue stream.

Why it is important: Even if Walmart’s initial press release mentioned that its new delivery as a service offer would benefit to small and local businesses, the size of the agreement shows that it is possible to build rapidly a solid additional revenue stream making the most of the core competences of the company.

Walmart has inked in its first agreement with a customer, Home Depot, willing to use its white label delivery-as-a-service that we mentioned earlier this month.

Home Depot (USD 19 billion sales online in 2020) will be able to offer same-day and next-day delivery services in some US States at the beginning, before being able to expand nationwide by the end of the year. Home Depot charges its customers USD 8,99 for same day delivery. The partnership with Walmart will enable the company to propose this service to 90% of the US population.

This will also guarantee Walmart a stream of revenue independently from the sales achieved in its stores, and will maximize the profitability of the infrastructure it has built during the past years.

Related news:

• Walmart launches a new white label service for retailers

Walmart's delivery service lands Home Depot as its first customer