Walmart GoLocal pushes deeper into food delivery with Local Express

Dive Brief:

Walmart’s white-label delivery service GoLocal is furthering its foray into the food sector by delivering for Local Express, an e-commerce platform focused on food and beverage retailers, the company announced last month.
Local Express customers, which include groceries, delis, bakeries and butchers, will have access to GoLocal's same-day and next-day delivery services through the arrangement, according to a news release. The deal also expands Local Express' delivery capabilities to Chicago, Miami and Arlington, Texas, businesses.
“As there continues to be strong consumer demand for delivery, it’s especially important for retailers to have a seamless online ordering and delivery experience,” said Bagrat Safarian, CEO of Local Express, in a statement. “Our collaboration with Walmart GoLocal will enable our food and beverage providers to offer low-cost, convenient delivery to their customers and stay competitive.”

Dive Insight:

GoLocal’s addition of Local Express satiates important needs for both parties. For the food retailers using Local Express' platform, same-day delivery is a critical service to satisfy on-demand orders and prevent spoilage while in transit.

For GoLocal, adding volume will ease the costly unit economics associated with last-mile delivery. It also connects GoLocal with small businesses, which the service is looking to add more of. Local Express is the first GoLocal client to focus on specialty food and beverage retailers, such as independent grocery stores, according to the release.

More than 500 stores are onboarded with Local Express. The platform houses a multi-vendor delivery system, which "automatically optimizes delivery time and cost options for regular and rush orders," according to its website.

Local Express adds to the spate of customers GoLocal has announced since October 2021, when the service revealed The Home Depot as its first retail client. Walmart's local delivery network now serves more than 2,000 retail locations nationwide, per the release.

Although it's unclear how many of those locations are food retailers, Walmart has highlighted the sector as key for GoLocal. The service is making deliveries for restaurant and bar Sea Dog Cantina through Cognetry Labs, bringing products like on-tap margaritas directly to consumers, according to a LinkedIn post. GoLocal is a delivery provider on Cognetry Labs' platform.

“Walmart GoLocal has the ability to react quickly, and time is critical on deliveries. Especially when you’re dealing with food," said Fred Forsley, founder and owner of Sea Dog Brewing Company, according to the post. Sea Dog Cantina in Clearwater, Florida, is a location of Sea Dog Brewing Company.

Same-day delivery demand surged during the COVID-19 pandemic, and it is poised to continue growing in the years to come, according to the 2022 Council of Supply Chain Management Professionals State of Logistics Report. The delivery market segment, which includes players like GoLocal, Shipt and DoorDash, is expected to grow from $8.7 billion in 2021 to $15.6 billion by 2025, it said.