Walmart has reportedly agreed to end its same-day grocery delivery partnership with logistics firm Deliv.
Reuters reported that Deliv ended the partnership with the retailer by serving a 90-day termination notice late last month.
Walmart partnered with Deliv in November 2017 by introducing same-day grocery delivery in San Jose, California, US.
Deliv has terminated the partnership as its drivers frequently waited for 40 minutes or more at Walmart stores to collect grocery orders, the news agency reported citing people familiar with the matter.
In addition, the sources said that one reason for the termination is Walmart’s practice of prioritising its customers over delivery drivers during regular hours.
Walmart confirmed the partnership termination with Deliv and noted that it currently has partnerships with seven delivery firms such as DoorDash and Postmates.
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Walmart spokeswoman Molly Blakeman was quoted by Reuters as saying: “As with any pilot, the intent is to learn. And we ultimately came to the conclusion with Deliv that while their platform is a good delivery option, it was not the best fit for our programme at this time.”
In January, Walmart added four delivery companies Point Pickup, Skipcart, AxleHire and Roadie to its network in order to support its urban grocery delivery services across four states.
The expansion marks the company’s grocery delivery service is now available in more than 800 stores. The retailer also plans to expand the service by adding another 800 stores this year.