The world’s largest retailer Walmart, Inc. (NYSE: NYSE:WMT) has committed to purchasing 4,500 Canoo, Inc. (NASDAQ: GOEV) electric delivery vans, according to Teslarati.
What Happened: On July 12, Walmart announced its partnership with Canoo. The EV maker's 4,500 Lifestyle Delivery Vehicles (LDV) will hopefully hit the road officially for Walmart by 2023.
By the fourth quarter of 2022, LDVs will begin to be delivered to the Dallas-Fort Worth metroplex area where the vehicles will undergo configuration and refinement before hitting the road.
The retail giant plans on beginning operations with its online grocery and general merchandise orders and could expand the company’s Walmart GoLocal program.
If Walmart and its customers are happy with the new vehicles, the partnership contract lists an expansion clause in which the company could expand its fleet to 10,000 LDVs.
Why It’s Important: This new partnership will allow Walmart to significantly improve its one-day delivery service for users. LDVs will allow for cheaper and faster delivery as they can charge quickly and eliminates the cost of gasoline, which keeps rising.
Walmart seems to be in a continuing battle with Amazon.com, Inc. (NASDAQ: NASDAQ:AMZN) to see which company can provide the best delivery service for customers. This new partnership could push Walmart ahead of the online retail behemoth.
Also Read: How Has Amazon Performed This Past Year With New CEO Andy Jassy At The Helm?
The new partnership could also benefit both parties by increasing public awareness of Canoo's EVs and Walmart’s delivery service.
Photo: Courtesy of Canoo
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