Walmart Inc. (WMT, Financial) announced on Tuesday that it is teaming up with San Francisco-based autonomous vehicle startup Nuro, which uses self-driving technology to deliver groceries to customers.
Bird’s-eye view of the case
The multinational retail chain is introducing an experimental trial in Houston in 2020, where it will use Nuro’s self-driving vehicle to deliver groceries from “select” stores to customers. The autonomous deliveries will only be available to those customers who have chosen the program in Houston. Walmart and Nuro have not yet made it known as to how the customers can sign up for the service. Houston-based customers can expect the service to be fully available in 2020. Walmart Senior Vice President Tom Ward said:
“Walmart is committed to serving our customers whenever and however they choose to shop. We are excited to work with Nuro and continue to learn as we are incorporating self-driving technology in our delivery options, learning more about our customers’ needs, and evolving Walmart’s future delivery offerings.”
The self-driving vehicle R2, Nuro’s customized vehicle that carries only products, would power Walmart’s grocery deliveries. Nuro’s head of partner relations, Cosimo Leipold, commented:
“Walmart’s dedication to its customers aligns with our desire to help people save time and money while making shopping easier. We are excited to join forces with Walmart to help provide the best possible delivery experience to customers,”
Walmart’s efforts to combat competition
Prior to Nuro’s partnership, the big-box retailer had also teamed up with Ford (F, Financial) and Gatik to test autonomous grocery shipments. The company also joined hands with a startup named Udelv earlier this year to deliver groceries to customers via autonomous vans in Arizona and launched an in-home delivery service where the delivery person would put the groceries directly in the customer’s fridge.
Amazon (AMZN, Financial) is also experimenting autonomous deliveries, including flying drones and roving Scout robots. Walmart has stepped up its game in light of the stiff competition in the grocery industry.
Conclusion
Walmart has been testing various ways to deliver groceries to the customer’s place from the stores via self-driving technology. The primary aim of the partership with Nuro is to see how autonomous grocery delivery can be used and improved to better serve Walmart’s shoppers.
It is still a long way to go before the service gets underway. Nuro’s vehicles are quite slow, and there is lack of regulations governing driverless vehicles, thereby limiting driverless couriers’ freedom to operate.
Disclosure: I do not hold any positions in the stocks mentioned.
Read more here:Â
- Kroger Misses 3rd-Quarter Earnings and Revenue Expectations
- Tiffany & Co. Records Disapointing 3rd-Quarter Results
- What Investors Need to Know About Salesforce's 3rd-Quarter Earnings
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.Â
